NEW YORK, NY -- (MARKET WIRE) -- December 04, 2006 -- New Oriental Energy & Chemical Corp. (OTCBB: NOEC), an emerging alternative fuel and specialty chemical manufacture in China, announced today that in mid November the Company significantly increased its Urea production capacity while also qualifying these products to meet the Chinese government's national standard.
The technological transformation of the previous facility began in March 2006 and as a result of the startup of the 65m3/min CO2 compressor the Company has increased production capacity from 300 tons to 450 tons per day or by over 50,000 tons annually. This increase in production capacity is expected to yield over $11 million in annual revenue based on current Urea prices. New Oriental Energy funded this project with a total capital expenditure to date of approximately $1.25 million.
"Traditionally, Urea has been used as a crop fertilizer and an additive to many different resins and plastics but recently has been found to transform nitrous oxide, a greenhouse gas associated with global warming which is generated by diesel engines into harmless emissions without comprising energy conversion and power," commented Mr. Chen Si Qiang, the Company's Chief Executive Officer. "We believe the expansion of our Urea capacity will provide a solid base of business for New Oriental Energy to accelerate the Company's entrance into new alternative energies by providing cash flow from the traditional fertilizer business while serving as a complementary asset to our expanding alternative energy product portfolio."
About New Oriental Energy & Chemical Corp.
New Oriental Energy & Chemical Corp. is an emerging alternative fuel and specialty chemical manufacturer based in Henan Province, China. The Company is focused on the production of Dimethyl ether (DME), methanol and fertilizer products, and the Company expects to begin production of bio-diesel within the next year. The Company sells its products primarily through a network of distribution partners.
Safe Harbor Statement:
This press release contains forward-looking statements concerning Sports Source, Inc. and New Oriental Energy. The actual results may differ materially depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology or product techniques, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the Company's reports filed with the Securities and Exchange Commission. New Oriental Energy & Chemical Corp. undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
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