The Chinese high-tech industrial materials manufacturing company China Gengsheng Minerals Inc., making its business through its subsidiary Gengsheng International Corporation (BVI), entered into an exclusive sales agreement with Junfu Sheng Precision Co., Ltd. The agreement is effective January 10, 2010.
Under the terms of this agreement, Junfu Sheng will market and sell Gengsheng’s fine-precision abrasives products US$0.44mln worth in the eastern part of Guangdong Province within 12 months of the agreement.
By words of Gengsheng Chairman and CEO Mr. Shunqing Zhang, the agreement “represents the first sales contract of our channel strategy, which is to find more abrasives dealers in different areas in China and to focus our marketing onto large-scale customers in the solar industry.”
Products to be marketed and sold by Junfu Cheng include fine precision abrasives used for polishing solar panels and precision equipments and for wire-slicing silicon wafers in the solar industry.
China Gengsheng negotiates with other distributors in different regions of China, in order to expand its abrasives business. China Gengsheng started the commercial production of abrasives during the fourth quarter of 2009. The abrasives market in mainland China and Taiwan makes approximately US$2billion, and the market for the solar-related abrasive products in China is US$750mln.