Hanfeng Evergreen Inc. ("Hanfeng") has completed the construction of the slow release component of the 200,000 tonnes per annum Heilongjiang Prill Tower NPK (nitrogen, phosphorus and potassium) plant currently under construction in Shangzhi, Heilongjiang province, China. The slow-release process involves proprietary Urea Formaldehyde ("UF") and Methylene Urea ("MU") technologies developed by Hanfeng's in-house R&D team. As announced previously, the plant construction is expected to be completed by the end of the second quarter 2007.
Hanfeng has filed patent protection for this UF/MU technology, which is another way of producing world leading slow-release fertilizer at a very competitive cost. UF and MU are a chemical form of slow-release fertilizer which release nutrients based on the time required to break down their chemical chains. The controlled release time can be as long as one to two years for UF and up to 110 days for MU.
Hanfeng's technology combines both slow-release and high nutrient NPK benefits at a cost that is affordable to farmers in China. In addition, it has significantly increased the variety of NPK that can be produced by the Heilongjiang Prill Tower NPK plant, including straight UF/MU fertilizers (high end products for the international urban greening market or to other blending plants), NPK granular fertilizers (as a raw material for slow-release coating process), and slow-release NPK fertilizers with various forms of nitrogen nutrients preferred by the farmers in China. If all production of this slow-release component is used to produce the pure form of UF/MU only, the maximum annual production capacity is 3,000 tonnes of UF/MU.
"In an increasingly competitive fertilizer market in China, we continue to lead on the slow-release fertilizer technology front." said Mr. Xinduo Yu, founder, President and CEO of Hanfeng. "By constantly developing and honing our competitive advantages of world leading fertilizer R&D with a low cost production process, we will maintain our position as a top tier provider of value-added fertilizer to China's vast agriculture fertilizer market."
With slow release NPK fertilizers, Hanfeng can offer farmers in China a reduction in the amount of fertilizer as well as the number of applications required, thereby providing direct cost-savings for agricultural inputs and labour. Hanfeng's superior quality slow-release NPK also increases crop yield, produces better quality crops, improves soil conditions and decreases pollution to the water system.
About Hanfeng Evergreen Inc.
Hanfeng is headquartered in Toronto, Canada and has been listed on the Toronto Stock Exchange since 2003. It is a leading provider of value-added fertilizer to China's urban greening and large agricultural markets. Hanfeng introduced slow-release fertilizer to the China fertilizer industry by establishing the first commercial-scale slow-release fertilizer plant in China. Using various advanced technologies, all Hanfeng fertilizers offer the benefits of slow-release. Hanfeng's production facilities in China are located in prime agricultural regions, and its quality products and competitive pricing are also attracting international sales interest. For more information, please visit: 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.
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For further information: Madeline Haiying Yu, CA, Chief Financial Officer, Email: info@hanfengevergreen.com; Hanfeng Evergreen Inc., Phone: (416) 368-8588, Fax: (416) 368-5688