VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 20, 2011) - Hanwei Energy Services Corp. (TSX:HE) ("Hanwei" or the "Company"), today announced that it has recently confirmed pipe supply contracts for new salt mining applications in China for an amount of approximately Renminbi ("RMB") 21.3 million (C$3.4 million).
Inclusive of the abovementioned new contracts, the Company has confirmed total sales orders to date for the China market of approximately RMB 105.9 million (C$17 million). These sales orders are expected to be fully produced and shipped in the Company's current fiscal year ending March 31, 2012. In fiscal 2011 the Company supplied approximately RMB 123.8 million (C$18.76 million) of FRP pipe to the China market.
The Company has for the last ten years served a wide range of oil and gas projects with resilient, non-steel, composite pipes that have provided long term performance in high pressure, high temperature, and highly corrosive operating environments. The Company has maintained its go forward strategy of focusing on its core FRP pipe business. Consistent with this strategy these new salt mining sales contracts represent a new, additional segment of application for Hanwei's FRP pipe products with a number of sales and marketing initiatives currently underway in China and internationally focused on oil & gas, infrastructure, and salt mining pipe supply projects.
About Hanwei Energy Services Corp.
Hanwei Energy Services Corp. is the leading Chinese manufacturer of high pressure, fiberglass reinforced plastic ("FRP") pipe products and associated technologies and services for international oil and gas, infrastructure and industrial applications. Hanwei serves major energy customers in the Chinese and global energy markets.
Certain information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. Material factors or risks which could cause actual results or events to differ materially from a conclusion in such forward-looking information include the risks that the Company may not be able to fulfill its sales orders, the sales of FRP pipe products may not materialize, the Company is unable to meet the delivery requirements for FRP pipe products, the Company is not able to meet its working capital and financing needs, the creditworthiness of the Company's customers deteriorates and the Company is unable to collect on outstanding accounts receivable, as well as the risks set out in the risk factors section of the Company's Annual Information Form dated June 20, 2011 filed with Canadian securities regulators and available on SEDAR at www.sedar.com.
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