China Infrastructure Construction Announces Update on New Plant in Xi'an

BEIJING, Dec. 3, 2010 /PRNewswire-Asia-FirstCall/ -- China Infrastructure Construction Corp. (OTC Bulletin Board: CHNC) ("CHNC" or the "Company"), a major U.S.-listed provider of ready-mix concrete headquartered in Beijing, announced today that its new concrete production plant in Xi'an, China has begun operations and contributed to total revenues in line with management's expectations for the first fiscal quarter ended August 31, 2010.

The new facility, which began construction in early January 2010, became fully operational in April and currently has 105 employees. For the three months ended August 31, 2010, the Xi'an station accounted for more than 20% of the Company's total sales volume. The Company's two largest customers during the three-month period, China Railway Construction Group Co., Ltd. and Beijing Urban & Rural Construction Group, accounted for 88% of the Xi'an station's total sales revenue.

Because of high labor and operating costs, many Chinese companies have begun to move their operations from eastern China to western China, where labor and operating costs are considerably less expensive than in the more developed coastal regions. Significant infrastructure and logistics systems upgrades and expansions are expected in China's western provinces in order to support growing fixed asset investments by governments and businesses in the region.

Xi'an, located in Shaanxi Province and often referred to as the "Gateway to the West," is expected to benefit from massive investments in infrastructure by the Chinese central government as well as regional and local authorities for many years to come. Xi'an is poised to become a "super city" with a population of 10 million people or more by 2020, compared to approximately 8.3 million today.

"The opening of our new facility in Xi'an is currently our most important strategic development, and we are pleased with our initial results in this key economic location. We are confident that with the tremendous growth potential in China's western region, we will rapidly increase our capacity utilization in Xi'an," said Mr. Yang Rong, Chairman and Chief Executive Officer of CHNC.  

About China Infrastructure Construction Corporation

CHNC was founded in 2002 in Beijing, China. Since then it has developed into one of the top ready-mix concrete producers in Beijing. The Company's products are environmentally friendly, as CHNC is a provider of "green" concrete in China.

Currently, the Company operates four production facilities and eight production lines with a total operating capacity of 3.5 million cubic meters based on its historical utilization rate. CHNC's production facilities are located in Beijing's Nanhaizi area, on the west side of the Yizhuang Economic Development Zone south of Beijing; the Shidu area, within the boundaries of the Zhangfang and Beijing Fangshan district; the Tangshan Development Zone, about 200 kilometers east of Beijing; and Xi'an, Shaanxi Province.

CHNC is a leader in China's "green concrete" movement, referring to the increased use of environmentally friendly and recycled materials in ready-mix concrete by reducing energy and raw material consumption during production, and by mixing and recycling various industrial wastes to create a more sustainable product.

All of CHNC's products have passed the ISO 9001:2005 Certification Quality System and Integrated Certification System, including the Quality Management System Certification, Environmental Management System Certification and Occupational Health and Safety Management System Certification issued by the Beijing Zhong Jian Xie Certification Centre.

CHNC's major projects include the Beijing World Trade Central Business District project and the Beijing Wangjing International Mansion.

Forward-looking Statements

Certain statements made in this news release, may contain forward-looking statements concerning the Company's business and products. These statements include, without limitation, statements regarding our ability to prepare the Company for growth, the Company's planned capacity expansion and predictions and guidance relating to the Company's future financial performance. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs, but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These factors may include, but are not limited to, such factors as unanticipated changes in product demand especially in the infrastructure construction industry, pricing and demand trends for the Company's products, changes to government regulations, risk associated with operation of the Company's new facilities, risk associated with large-scale implementation of the Company's business plan, the ability to attract new customers, ability to increase its products' applications, cost of raw materials, downturns in the Chinese economy, and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission. Investors are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

SOURCE China Infrastructure Construction Corporation

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