China Marine Food Group Ltd. Concludes Groundbreaking Ceremony for New Cold Storage Facility
China Marine Food Group Ltd. (NYSE Amex: CMFO), a manufacturer of seafood-based snack foods, marine algae-based soft drinks and distributor of fresh and frozen marine catch, announced that it concluded a ceremonial groundbreaking for its new cold storage facility on April 17, 2010, reports www.megafishnet.com with reference to China Marine Food Group Ltd.
The new cold storage facility will have a capacity of approximately 20,000 tons. The land on which the facility will be built is 8,691 square meters and located in the Shishi fishing port and is adjacent to the Company's processing facilities. The location of the new facility takes advantage of the port of Shishi where the Company obtains fresh seafood catch which it processes into seafood products. The fishing port in Shishi is one of the five largest fishing ports in the PRC.
China Marine intends to finance the construction costs for the facility from funds generated by operations, and expects to complete construction and begin use of the new facility in the first half of 2011. Based on the Company's existing in-house cold storage capacity of 2,000 tons, China Marine currently rents cold storage space at other locations to meet its cold storage demand for the Company's 20,000 ton processing facility. The new storage facility will provide ample storage for China Marine's internal needs and supply the fishing port with needed storage in the port itself. When fully operational, China Marine expects the cold storage facility to produce $8.0 million in annual storage, blast freezing and ice revenues and contribute $4.0 million in net income at about 50% net income margins. Due to the importance to China Marine and the local economy, over 200 people attended the event, including the Mayor of Shishi, government officials and the Company's distributors.
"We are very pleased to announce the ceremonial groundbreaking for our new facility," said Pengfei Liu, Chairman and CEO of China Marine. "Our new cold storage facility will provide high standard modernized cold storage, freezing and ice making services to the port area in which it is located. China Marine will utilize some of the facility's cold storage for itself to help reduce its storage costs. The new facility will also allow us to make bulk purchases of raw materials at favorable prices. Overall, we expect the new facility to help us improve our processed seafood and marine catch margins and also provide a facility to meet increased cold storage demand for Shishi's growing fishing industry."
About China Marine
China Marine Food Group Ltd. processes and distributes seafood-based snack foods, marine algae-based beverage and fresh and frozen marine catch to seven provinces in the PRC. Founded in 1994, China Marine has grown steadily and positioned its Mingxiang(R) brand as a category leader in 2,500 retail sales points in the PRC. The Company has received "The Famous Brand" and "Green Food" awards. China Marine is located in Fujian province, one of the largest coastal provinces in the PRC and a vital navigation hub between the East China Sea and the South China Sea. The Company is committed to the highest standard of quality control with the ISO9001, ISO14001, HACCP certification and EU export registration.
Forward Looking Statements
This release contains certain "forward-looking statements" relating to the business of China Marine Food Group Limited and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. China Marine Food Group Limited is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward- looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.