China Ritar Power Corp. [[CRTP]] (the “Company” or “China Ritar”), a leading Chinese manufacturer of lead acid batteries, today announced that the Hengyang government has agreed to provide the Company a new industrial park in Hengyang which will enable China Ritar to expand production capacity for lead acid batteries by more than three times current production capacity. Once the new facility is in full production, China Ritar’s total annual production capacity will increase to approximately US$650 million, up from its current annual production capacity of US$200 million.
China Ritar’s new industrial park is part of the Chinese government’s US$586 billion economic stimulus package launched at the end of 2008. In an effort to encourage new development in Hengyang, the Hengyang government has agreed to add a new industrial park with nine production facilities and two dormitories on 214.7 square kilometers of land next to China Ritar’s current industrial park. The new industrial park is expected to be completed and ready for equipment to be installed by October 2009. China Ritar will receive free use of the facilities for the first year and then pay the Hengyang government approximately 50 percent of the market price for the following four years. Furthermore, China Ritar has complete flexibility as to the number of buildings it will utilize along with the first right to purchase the facilities.
“We are extremely pleased to have the support of the Hengyang government to expand our production capacity for lead acid batteries. The new industrial park, which has a market value of approximately US$30 million, will enables us to increase our annual production capacity by over three times our current capacity. In addition, the new facilities, once equipped with new state-of- the-art machinery, will also be more efficient resulting in about a 3% improvement in our gross margin,” commented Mr. Jiada Hu, China Ritar’s Chairman and CEO. “The completion of this agreement with the Hengyang government is extremely timely as demand for our lead acid batteries continues to grow, specifically in telecommunication, alternative energy and electric vehicle markets.”
About China Ritar
China Ritar designs, develops, manufactures and markets environmentally friendly lead acid batteries with a wide range of capacities and applications, including telecommunications, Uninterrupted Power Source (UPS) devices, Light Electrical Vehicles (LEV), and alternative energy production (solar and wind power). China Ritar sells, markets and services six series and 197 models of Ritar-branded, cadmium-free valve-regulated lead-acid (VRLA) batteries. Products are sold worldwide with sales in 81 countries including China, India, and numerous markets in Europe and the Americas. Additional information can be found at the Company’s website http://www.ritarpower.com .
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