SOURCE: Zhongchai Machinery, Inc.

December 02, 2010 18:03 ET

Zhongchai Machinery Expanding Production Capacity to Meet Market Demand

HANGZHOU, CHINA--(Marketwire - December 2, 2010) -  Zhongchai Machinery, Inc. (OTCBB: EQPI) announced that its wholly owned Chinese subsidiary, Zhejiang Zhongchai Machinery Co., Ltd. ("Zhejiang Zhongchai"), is expanding its gear production capacity to meet increasing market demand. The expansion will be completed by the end of 2010 and will bring the gear production capacity to annual production of 2.5 million units from current annual production capacity of 1.2 million units. The budget for the expansion will be from Zhongchai's internal working capital.

Zhongchai produces high-grade gears for the use in diesel engines and in transmission gearboxes. Zhongchai has entered into an area of business that enjoyed the fast growth of infrastructure build up in China. With its technology advantages and superior production quality, Zhongchai is facing a high demand from the market for its products. Zhongchai has to quickly increase its production capacity to meet the market demand.

"We are very happy to see this production capacity expansion as part of our business plan to meet the market demand. We shall continue to expand our production lines as our market coverage expanding," said by Mr. He Mengxin, the president of Zhejiang Zhongchai.

Zhongchai Machinery, Inc.

Zhongchai Machinery, Inc. is a developer, producer, and distributor of gears, transmission gearboxes, and transaxles for industrial and agricultural equipment, such as forklift trucks and diesel engines. It conducts its business in China through its wholly owned subsidiary in China.

FORWARD-LOOKING STATEMENTS

This release contains certain "forward-looking statements" relating to the business of EQPI and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes, expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. These forward-looking statements are based on EQPI's current expectations and beliefs concerning future developments and their potential effects on EQPI. There can be no assurance that future developments affecting EQPI will be those anticipated by EQPI. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. EQPI undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Contact Information