Henan Kaifeng Receives $4.7 Million Purchase Order For Nuclear Forged Steel Valves From CGNPG

Henan Kaifeng High Pressure Valve Co., Ltd. (Henan Kaifeng), a subsidiary of China Valves Technology, Inc., has received purchase orders for nuclear forged steel valves from China Guangdong Nuclear Power Group (CGNPG). The contract is valued at $4.7 million. The nuclear forged steel valves will be used for CGNPG's projects at Liaoning Hongyan River and Fujian Ningde nuclear power station. The company has to deliver 50% of the order by 2009 and must deliver the remaining orders before March 2010.

CGNPG will pay 10% of the contract value immediately and the remainder upon delivery.

Nuclear forged steel valves are used primarily in the steam turbines of a nuclear power plant's conventional island. The steam turbines generate thermal energy that is converted into electric power in the conventional island. Nuclear forged steel valves have stricter production standards than ordinary forged steel valve products in terms of quality and safety.

'Receiving this purchase order is major step forward in expanding our footprint in the nuclear power sector in China. It demonstrates the superior quality of our forged steel valves as well as our dedicated marketing efforts that have increased awareness of our brand among key players in this fast- growing sector,' said Siping Fang, chairman and chief executive officer of China Valves.

According to the latest estimate as of April 2009 from the National Energy Administration, China's administrative body overseeing the energy industry developments and standards, China's total nuclear power installation capacity is expected to reach over 75 Gigawatt-electric (GWe) by the end of 2020, up from 9.1 GWe at the end of 2008, indicating an increase of around 5.5 GWe in nuclear power installation capacity per year. In comparison, the International Atomic Energy Agency expects global nuclear power installation capacity to increase between 4.6 GWe and 17.1 GWe annually between 2009 and 2030.

'Currently the majority of China's nuclear power station projects are completed in collaboration with foreign nuclear power technology companies. However, as the technology of domestic nuclear power equipment providers improves, the Chinese government intends to encourage domestic involvement in China's nuclear power sector. This opens the door for technologically advanced, value-added manufacturers like China Valves to expand our market share in this important sector,' said Fang.