TONG XIANG, Zhejiang,
China, March 16, 2011
/PRNewswire-Asia/ -- Lizhan Environmental Corporation ("Lizhan" or
the "Company") (Nasdaq: LZEN), a China-based supplier of collagen fiber and
other fabrics manufactured from recycled leather waste, announced
today that it has successfully launched the production of its first
end product Evergreen Product production line.
This development puts the company in the forefront of
China's eco-friendly leather
manufacturing industry. This patented product is expected not only
to generate high economic benefit but also to mitigate the
inevitable waste of scratch leather generated during the leather
manufacturing process and alleviate the negative environmental
impact of such waste. Evergreen Productions are eco-friendly,
bacteria and fire resistant textile, which can be used in a wide
range of applications such as furniture, automotive upholstery and
garments. The company anticipates generating revenue from sales of
Evergreen Products beginning in the quarter ending June 30, 2011, subject to customers' inspection
of, and satisfaction with, the quality of the materials. It is
expected that the Evergreen Products to be produced by this
production line will generate sales in fiscal year 2011 that
represent a portion of the advance sales purchase orders received
by the Company, which orders amount to approximately $32.5 million in the aggregate. In light of the
previously disclosed delays and increased costs in constructing the
Evergreen Product facility and installing the first Evergreen
Product production line, the Company is currently evaluating the
timing of the installation of its next production line and the type
of products to be manufactured using such production line.
"We are very proud to be the first to introduce a revolutionary
product, the Evergreen Product, which is expected to generate
higher margins than our existing products, to the leather market.
These new products can provide the company with significant
benefits such as higher price premiums and greater market share in
China's leather industry. At the
same time, we are currently testing for other industrial
applications and uses of collagen fiber," said Mr. Jianfeng Liu, Lizhan's Chairman and CEO.
About Lizhan Environmental Corporation
Lizhan Environmental Corporation manufactures, distributes and
markets environmentally-friendly collagen fiber and other fabrics
from recycled leather waste. The Company's products are mainly used
in furniture, garment, automotive and other consumer
applications.
Safe Harbor Statements
This press release may contain forward-looking statements
within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, and as defined in the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements
involve inherent risks and uncertainties that could cause actual
results to differ materially from those projected or anticipated,
including risks outlined in the Company's public
filings with the Securities and Exchange Commission, including the
Company's annual report on Form 20-F. All information
provided in this press release is as of the date of this release.
Except as required by law, the Company undertakes no obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise, after
the date on which the statements are made or to reflect the
occurrence of unanticipated events.
|
|
For more information, please
contact:
|
|
|
Corporate
Contact:
|
Investor
Relations Contact
|
|
Lizhan
Environmental Corporation
|
Cooper
Global Communications
|
|
Silvia
Liu, IR
Manager
|
Phone:
+1-212-317-1400
|
|
Phone:
+86-573-8862-1268
|
Richard
Cooper
|
|
Email:
ir@lzencorp.com
|
Email:
rcooper@cgc-us.com
|
|
Website:
www.lzencorp.com
|
Sabrina
Zhang
|
|
|
Email:
szhang@cgc-us.com
|
|
|
|
SOURCE Lizhan Environmental Corporation