SOURCE: China ACM

China ACM

September 14, 2010 07:55 ET

China ACM Announces Concrete Sales Contracts Totaling $12 Million

BEIJING--(Marketwire - September 14, 2010) - China Advanced Construction Materials Group, Inc. (NASDAQ: CADC) ("China ACM"), a leading provider of ready-mix concrete and related technical services in China, today announced a number of contracts recently awarded to its Concrete Sales division totaling $12 million.

These contracts are announced to provide a representative sample of projects won in recent months that exemplify the diversity and strength of its Concrete Sales division revenue, the Company's largest segment by revenue.

"The diversification and rapid growth of our Concrete Sales segment demonstrate the demand for our premium ready-mix concrete (RMC) blends," said Jeremy Goodwin, President and Chief Financial Officer, China ACM. "Our unrivalled chemical and materials engineering expertise and extensive industry relationships provides a powerful competitive advantage.

"China ACM's Concrete Sales customer base is distinguished by approximately 70 different contractor customers with one or more projects currently in process, and several times that number of successfully fulfilled different contractor projects over the past three years alone," he added. "Our Concrete Sales project mix spans industrial, commercial, schools, residential, transportation, utilities, public infrastructure and more which speaks to the sustainable nature of our growing revenue base." 

Last month, China ACM announced its preliminary estimate for the fourth fiscal quarter of 2010 ended June 30 includes Concrete Sales revenue approximately doubling from $11.7 million in the year-ago quarter. China ACM's patented premium RMC blends, and focus on turnkey related engineering services consulting, provide it greater pricing power.

China ACM Concrete Sales contracts typically have lives ranging from a few weeks to 15 months, with most clustered around four to ten months. At the end of the fourth quarter, China ACM had approximately 90 current Concrete Sales contracts with values ranging from $8,000 to about $3 million. These contracts are serviced primarily from China ACM's five fixed plants in Beijing.

The contracts listed below have completion dates ranging from November to May, 2011, with most ending in early 2011. They are listed by contractor name, project name and dollar value. The dollar value is expressed in broad irregular ranges due to competitive considerations.

  • Zhongshen Construction Installation Engineering Co.: Hotspring Town D for $2.5 million to $3 million.

  • Fuda Construction Co., Ltd.: Reconstructing National Highway 108 (Nancun-Shimenying) for $1.5 million to $2 million.

  • Beijing Development Construction Co., Ltd.: Beijing Chaolai High-tech Industrial Park #6, 7 & 8 for $1 million to $1.25 million.

  • Beijing Chaoyang Tianhua Construction Group: Beijing new-generation Business Clubhouse #3 for $750,000 to $1 million.

  • Beijing Huaxiadun Water-proof Sci. & Tech Co., Ltd.: Jingding Sunshine School Construction for $750,000 to $1 million.

  • Beijing Urban & Rural Construction Engineering Co., Ltd.: Residential Buildings H-03, H-04 of Shiyingmen Villagers, Yongding Town, Mentougou District for $750,000 to $1 million.

  • China Changtai Construction Co., Ltd.: Wuluju Buildings #3, #4 for $250,000 to $300,000.

  • Beijing Jingxi Construction Group Co., Ltd. Shiyingmen Villager Residential Buildings (Section 2), Yongding Town, Mentougou District for $250,000 to $300,000.

  • Jiangsu Huajian Construction Co., Ltd.: Beijing Yizhuang Jingfeng Kechuang residential complex for $1.5 million to $2 million.

  • Beijing Mine Construction Installation Co., Ltd.: Residential Buildings of Donglongmen Villagers, Longquan Town, Mentougou District for $750,000 to $1 million.

  • Beijing Jingxi Construction Group Co., Ltd.: Residential Buildings of Donglongmen Villagers, Longquan Town, Mentougou District for $750,000 to $1 million.

  • Residential Buildings of Donglongmen Villagers, Longquan Town, Mentougou District for $750,000 to $1 million.

  • China Aerospace Construction Engineering Company: Heat Exchange and Transformer Substation Construction of Fucheng Rd #8 for $150,000 to $225,000.

About China ACM
China ACM is a leading producer of advanced, certified eco-friendly ready-mix concrete (RMC) and related technical services for large scale, high-speed rail (HSR) and other complex infrastructure projects. Leveraging its proprietary technology and value-add engineering services model, the Company has won work on numerous high profile projects including the 30,000 km China HSR expansion, the Olympic Stadium Birds' Nest, Beijing South Railway Station, Beijing International Airport, National Centre for Performing Arts, CCTV Headquarters and U.S. and French embassies.

Founded in 2002, Beijing-based China ACM provides its materials and services through its network of five ready-mix concrete plants covering the Beijing metropolitan area. Of those five plants, it owns one and leases four. It also has technical services and preferred procurement agreements with five other independently-owned plants across China. Additionally, the Company presently owns 16 portable plants deployed in 10 provinces across China. Currently, its total RMC production designed capacity is in excess of 11 million cubic meters annually. Additional information about the Company is available at www.china-acm.com.

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