27th Mar 2007 07:00
China Shoto plc27 March 2007 Press Release 27 March 2007 China Shoto plc ("China Shoto" or "the Group") Proposed extension of manufacturing facility China Shoto plc (AIM:CHNS), a leading Chinese producer of industrial batteriesand power supply systems, announces that due to increased demand for its powertype VRLA batteries which are used for powering electric bicycles, it hasdecided to expand its manufacturing facility at its wholly owned subsidiaryJiangsu Best Power Supply Co. The current manufacturing facility will beexpanded by some 15,768 square metres and when construction is completed in June2007 it will then total 43,768 square metres. Commercial production utilisingthe newly built facility is expected to commence in September 2007 and thisextension will then increase the current production levels of 18,000 units perday to 24,000. The cost of expanding the manufacturing facility will be circa£1.14 million and this will be met from existing resources. China Shoto expects the electric bicycle market in China will continue to grow.According to the latest statistics from the Jiangsu Bicycle Association, theproduction volume of the electric bicycle manufacturers in 2006 increased bymore than 78% compared to that of 2005. The Group believes that this growingdemand is generated both by the need for cheap and efficient transportation andthe desire to switch to greener alternatives. Cao Guifa, Executive Chairman of China Shoto plc, said: "It is extremelypleasing to see that the Group's strategy of investment into a modernmanufacturing facility, specialising in the production of batteries for theelectric bicycle market, has been the right one. Demand within China forelectric bicycles continues to grow unabated and this new extension to thefacility that we opened last May will accommodate the anticipated market growth,allowing us to further increase our market share and maintain our position asone of the market leaders in this sector." - Ends - For further information: China Shoto plcCao Guifa, Executive Chairman Tel: +44 (0) 20 7398 7700 www.chinashoto.com Seymour Pierce LimitedStuart Lane / John Depasquale Tel: +44 (0) 20 7107 [email protected] www.seymourpierce.com Media enquiries:AbchurchHenry Harrison-Topham / Laura Riascos Tel: +44 (0) 20 7398 [email protected] www.abchurch-group.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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