Migao Corporation Announces New Potassium Sulphate Fertilizer Production Facility

"Migao has been aggressively expanding production capabilities and we are producing at full capacity at all three of our current facilities. We view the new Shanghai facility as another step towards our goal of becoming China's leading supplier of specialty potash fertilizers," said Mr. Liu Guocai, Migao's President and CEO.

Shanghai Migao shall initially produce 40,000 tonnes of potassium sulphate fertilizer for high value crop customers, particularly the fruit and vegetable growers. Migao has received all preliminary approvals from local government agencies to begin construction. Construction will commence in late November 2006, and is scheduled to be completed and put into production within 12 months. T

The new wholly owned subsidiary is Migao's fourth production facility in China and is eligible for similar tax breaks as Migao's first three facilities. The new plant, when fully operating, shall also be producing, as a byproduct of potassium sulphate production, nearly 100,000 tonnes of hydrochloric acid.