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China Direct Industries Begins Process to Restart Production at Two Magnesium Facilities

^{Published on 2010-05-07 05:40:47 - Market Wire}
 

DEERFIELD BEACH, FL--(Marketwire - May 7, 2010) - China Direct Industries, Inc. ("China Direct Industries") (NASDAQ: [ CDII ]), a U.S. owned holding company operating in China in two core business segments, pure magnesium production and distribution of basic materials, announced today that it has begun the process to restart production of magnesium ingots at two facilities, Baotou Changxin Magnesium and Chang Magnesium. Management expects production to commence at the facilities beginning in July and August of 2010.

As production at our Golden Magnesium facility nears its full capacity of 12,000 metric tons annually, management has decided to restart production at Baotou Changxin Magnesium and Chang Magnesium, which had been idled due to weak demand for magnesium throughout the course of 2009. Management believes magnesium markets are beginning to firm and anticipates rising demand in the coming quarters. These facilities are expected to add 30,000 metric tons of manufacturing capacity annually once they become operational in late July or early August, 2010.

Commenting on the event, Dr. James Wang, Chairman and CEO of China Direct Industries, Inc., stated, "We remain extremely confident about the long-term prospects for our magnesium operations as we move through 2010. We have seen a marked pickup in quoting activity for larger quantity orders in recent months and are confident that the gradual improving trends in price and demand we see in the market will continue to gain momentum throughout the remainder of 2010 and into 2011."

About China Direct Industries, Inc.

China Direct Industries, Inc. (NASDAQ: [ CDII ]), is a U.S. owned holding company operating in China in two core business segments, pure magnesium production and distribution and distribution of basic materials in China. China Direct Industries also provides advisory services to China based companies in competing in the global economy. Headquartered in Deerfield Beach, Florida, China Direct Industries operates 8 subsidiaries throughout China. This infrastructure creates a platform to expand business opportunities globally while effectively and efficiently accessing the U.S. capital markets. For more information about China Direct Industries, please visit [ http://www.cdii.net ].

DISCLOSURE NOTICE:

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Direct Industries, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expectations concerning our ability to recommence magnesium production on schedule and our long term prospects for our magnesium operations, magnesium demand, prices and market momentum.

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Transition Report on Form 10-K for the fiscal year ended September 30, 2009.