Thursday, October 30, 2008

China Energy Corporation Continues Expansion Strategy

Demand and Selling Prices Expected to Remain High


China Energy Corporation, a leading producer of coal, heat, and electricity in Inner Mongolia, China, is pleased to provide this corporate update regarding its operations. "Our persistent focus on expanding our production of coal, heat, and electricity has positioned the Company to take full advantage of the major economic transformation and urban migration now taking place within Inner Mongolia," said Mr. WenXiang Ding, President of China Energy. "We expect demand and pricing for coal, heat, and electricity to remain high as we enter the traditionally cold winter season in northern China." As part of China Energy's ongoing expansion strategy, Inner Mongolia TeHong Coal and Power Co. Ltd., a wholly owned subsidiary of the Company, continues to enhance its production facilities and intends to increase its annual coal production capacity by 80% to 900,000 tons from the current production rate of 500,000 tons. Inner Mongolia TeHong Coal and Power Co. Ltd. was recently named one of the top 20 Chinese coal producers by the China Coal Industry Association. Inner Mongolia Zhunger County Heat Power Co. Ltd., the Company's other wholly owned subsidiary, continues to enjoy a government granted monopoly in the heating market for the XuanJiaWan District in Inner Mongolia. Completed in 2006, their modern thermoelectric power plant and six heat transfer stations have increased heating capacity in the area by over 150 times. The Company intends to leverage upon this success and to utilize its established industry and government relationships to expand into new power supply opportunities in the region.

No comments: