Chinese manufacturing company China Gengsheng Minerals Inc., conducting its business through the BVI-registered Gengsheng International Corporation, announced that it has signed 3-year operating lease agreement for an approximately 215,000 square foot fracture proppant manufacturing facility in Henan province, China.
The new facility is expected to significantly increase company’s fracture proppant capacity; its resources will be used primarily for the manufacturing of mid- to high-end fracture proppant products, targeting customers outside domestic Chinese market.
China Gengsheng Minerals started the commercial launch of its fracture proppant products in the second quarter of 2007, the revenue from this product segment was US$8 million in the year 2009. For the second quarter of 2010, fracture proppants made US$3.1 million, or 20.6% of total revenue sales. Approximately half of sales in the second quarter 2010 came from domestic customers, the remaining 50% came from international customers, primarily located in North America. According to China GengSheng’s CEO and Chairman Mr. Shunqing Zhang, the company is now “in the process of developing a North American sales team that will allow Gengsheng to more effectively engage customers internationally and capture additional market share as demand for proppant materials continues to grow.”