China Gengsheng Minerals, Inc., Nevada-based company conducting its business through the BVI-registered Gengsheng International Corporation, renewed its full-service contracts for refractory products with three Chinese steel customers. The company announced that the combined total value of contracts with Anhui Changjiang Steel Co. Ltd., Heilongjiang Jianlong Steel Co. Ltd. and Laiyuan Aoyu Steel Co., Ltd. made US$7.3 million. The payments will be made on a monthly basis in accordance with the production schedules.
Mr. Shunqing Zhang, Chairman and CEO of the Company, said that full-service programs “typically enjoy higher gross margins than straight product sales”, ensure stable customer relations and recurring monthly payments. China Gengsheng’s full-service program to China steel mills takes the form of refractory product installation, testing, maintenance, repair and replacement. The company reported that in the first nine months of 2009 full-services customers contributed approximately 49.1% of the company’s total sales of refractory segment.