Business & Finance
Business and Finance
Business and Finance
Wed, August 12, 2009 Hanfeng Evergreen Inc.: Hanfeng Selected to Establish National Standard for SCU
TORONTO, ONTARIO--(Marketwire - Aug. 12, 2009) - Hanfeng Evergreen Inc. (TSX:HF) ("Hanfeng" or the "Company"), a leading producer of slow and controlled release fertilizers in China, announced today that it has been selected by the Standardization Administration of the People's Republic of China ("Standardization Committee") to establish the national compulsory standard for sulphur coated urea ("SCU"), as well as the standards for blended fertilizers where SCU is used. Hanfeng will team with the National Center for Quality Supervision and Testing of Chemical Fertilizers ("National Quality Center") to further refine and improve the specifications and provisions provided in the Chemical Industry Standard for SCU, which Hanfeng and the National Quality Canter established in September 2008, to form the national standard to be enforced nation-wide. The SCU national compulsory standard will control technical specifications including the amount of nitrogen and sulfur contained in SCU, as well as the dissolution criteria for its slow-release characteristics. Once established and approved, all SCU producers in China will be required to qualify their product to this standard.
Hanfeng was selected by the Standardization Committee to participate in the establishment of the national standard due to its position as the only large scale SCU producer in China. Hanfeng's current SCU production includes 100,000 metric tonnes per annum ("mtpa") from its wholly-owned facility in Jiangsu Province, 50,000 mtpa through a joint venture in Shangxi Province, and 40,000 mtpa through a another joint venture in Shandong Province. Hanfeng applies its self-developed polymer microcrystalline wax technology to adjust the release pattern of SCU to meet the nutrient demand of various crops during the entire growing season. The Company is currently conducting extensive SCU field trials with the Ministry of Agriculture in six provinces of China.
"China is the largest fertilizer producer and consumer in the world and must establish, monitor, and enforce standards for industry in order to support best practices and encourage the use of new technologies," stated Mr. Liu Gang, Chief Director of the National Quality Center. "While relatively new to the China agriculture market, SCU is strongly promoted by the government and has been widely recognized by farmers for its low carbon, high efficiency, environmental friendly characteristics and its proven ability to increase crop yield and farmer's income, while decreasing energy consumption and reducing environmental pollution. In this case, it is particularly important that we create the SCU national compulsory standard in order to oversee and enforce product standards and protect our farmers from inferior products. With its proven SCU patented technology, Hanfeng has played a key role in establishing the Chemical Industry Standard and are very pleased to have them as part of this very important process."
SCU is one of the most used slow-release fertilizers worldwide. However it is relatively new in China, especially to its agricultural market, which consumes over 50 million tonnes of conventional nitrogen fertilizers annually. Hanfeng's field trials have demonstrated that SCU offers numerous benefits over conventional fertilizers. In establishing its low-cost, high quality SCU, Hanfeng has been extremely successfully in penetrating China's vast agricultural market.
"We are honored to have been selected once again to participate in the creation of an SCU national compulsory standard," stated Xinduo Yu, President and CEO of Hanfeng. "Hanfeng has consistently sought to produce only the highest quality low carbon and environmental friendly slow and controlled release fertilizers and have been recognized by government and industry for our efforts. China's agriculture industry is key to the country's future, and we expect to play a significant role in providing the products, and setting the standards, that advance farming technology and improve effectiveness and efficiencies throughout the country."
About Hanfeng Evergreen Inc.
Hanfeng is a leading producer of slow and controlled release fertilizers in China. It was the first company to introduce the concept of slow and controlled release fertilizers into China's agriculture market with its establishment of the first commercial scale production in China. All production facilities are located in prime agricultural regions of China. The Company is headquartered in Toronto, Ontario and its shares trade on the Toronto Stock Exchange. [ www.hanfengevergreen.com ]
This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about Hanfeng's business are more fully discussed in the Company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada. All amounts are stated in Canadian dollars except for noted otherwise.
