CHANGSHU, China, Feb. 11, 2015 /PRNewswire/ -- Sutor Technology Group Limited (the "Company" or "Sutor") SUTR, one of the leading China-based manufacturers and service providers for fine finished steel products used by a variety of downstream applications, today announced that its subsidiary, Changshu Huaye Steel Strip Co., Ltd. ("Changshu Huaye"), entered into a non-binding letter of intent dated February 8, 2015 (the "LOI") with the shareholders of Shanghai Huaye Iron & Steel Group Co., Ltd. ("Shanghai Huaye"). The LOI contemplates a transaction in which Changshu Huaye will acquire Shanghai Huaye, a company incorporated and existing in China.
The Company expects that Changshu Huaye will be a controlling shareholder of Shanghai Huaye when this transaction is completed. Shanghai Huaye presently has eight subsidiaries, which have 53 precision processing lines, with a total annual processing capacity of approximately 10 million tons and a total annual storage capacity of approximately 15 million tons. Consummation of the transaction is subject to entry into a definitive agreement between the parties containing specific signing and closing terms and conditions yet to be negotiated.
Ms Lifang Chen, Chief Executive Officer and President of the Company commented, "We are pleased that we have seized the opportunity in industry transformation and taken an important step in seeking potential acquisition targets. After signing the LOI, we will carry out audit and assessment on Shanghai Huaye. We believe this transaction will provide a positive impetus for Sutor's business transformation. Our strategic expansion will make Sutor an integrated service provider of research and development, sales, processing, logistics and e-commerce of customized fine finished steel. We will provide an update on our progress of the transaction when and if appropriate."
About Sutor Technology Group Limited
Sutor is one of the leading China-based manufacturers and service providers for high-end fine finished steel products and welded steel pipes used by a variety of downstream applications. The Company utilizes a variety of in-house developed processes and technologies to convert steel manufactured by third parties into fine finished steel products, including hot-dip galvanized steel, pre-painted galvanized steel, acid-pickled steel, cold-rolled steel and welded steel pipe products. In addition, the Company offers fee-based steel processing services and sells fine finished steel products through electronic commerce platforms. To learn more about the Company, please visit http://www.sutorcn.com/en/index.php.
Forward-Looking Statements
This press release includes certain statements that are not descriptions of historical facts, but are "forward-looking statements" in nature within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, among others, those concerning our potential acquisition of Shanghai Huaye, expected business transformation, liquidity and strategic and operational plans, our future operating results, our expectations regarding the market for our products, our expectations regarding the steel market, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended June 30, 2014, and other risks mentioned in our other reports filed with the Securities Exchange Commission ("SEC"). Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.
For more information, please contact:
Investor Relations
Sutor Technology Group Limited
Tel: +86-512-5268-0988
Email: investor_relations@sutorcn.com
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SOURCE Sutor Steel Technology Co., Ltd.
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