China Gengsheng Minerals, Inc., a Chinese company conducting its business through its fully owned BVI-registered subsidiary Gengsheng International Corporation, announced on May 14 that it has signed a contract with Shenyang Hongyuan Co. Ltd., a company registered in Shenyang, Liaoning province in China.
By the terms of the contract, total value of which is US$870,000, China Gengsheng will ship fracture proppants to Shenyang Hongyuan in the period from May 2008 till the end of October 2008. Fracture proppants are light, bauxite-based materials with round and smooth surface and a quality of resisting high pressure and acid corrosion, used by drillers to release trapped pockets of oil and natural gas.
China Gengsheng Minerals is a leading manufacturer of heat-resistant and energy-saving industrial materials in PRC; in February 2008, the company won four supply contracts for the Hanbao Steel Project, at the amount of approximately $1.9 million.