Lizhan Environmental Announces the Launch of the Production of Its New Evergreen Leather Products
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TONG XIANG, Zhejiang, China -- Lizhan Environmental Corporation ("Lizhan" or the "Company") (Nasdaq: LZEN), a China-based supplier of collagen fiber and other fabrics manufactured from recycled leather waste, announced today that it has successfully launched the production of its first end product Evergreen Product production line.
This development puts the company in the forefront of China's eco-friendly leather manufacturing industry. This patented product is expected not only to generate high economic benefit but also to mitigate the inevitable waste of scratch leather generated during the leather manufacturing process and alleviate the negative environmental impact of such waste. Evergreen Productions are eco-friendly, bacteria and fire resistant textile, which can be used in a wide range of applications such as furniture, automotive upholstery and garments. The company anticipates generating revenue from sales of Evergreen Products beginning in the quarter ending June 30, 2011, subject to customers' inspection of, and satisfaction with, the quality of the materials. It is expected that the Evergreen Products to be produced by this production line will generate sales in fiscal year 2011 that represent a portion of the advance sales purchase orders received by the Company, which orders amount to approximately $32.5 million in the aggregate. In light of the previously disclosed delays and increased costs in constructing the Evergreen Product facility and installing the first Evergreen Product production line, the Company is currently evaluating the timing of the installation of its next production line and the type of products to be manufactured using such production line.
"We are very proud to be the first to introduce a revolutionary product, the Evergreen Product, which is expected to generate higher margins than our existing products, to the leather market. These new products can provide the company with significant benefits such as higher price premiums and greater market share in China's leather industry. At the same time, we are currently testing for other industrial applications and uses of collagen fiber," said Mr. Jianfeng Liu, Lizhan's Chairman and CEO.
About Lizhan Environmental Corporation
Lizhan Environmental Corporation manufactures, distributes and markets environmentally-friendly collagen fiber and other fabrics from recycled leather waste. The Company's products are mainly used in furniture, garment, automotive and other consumer applications.
SOURCE Lizhan Environmental Corporation
CONTACT: Corporate Contact: Lizhan Environmental Corporation, Silvia Liu, IR Manager, +86-573-8862-1268 or ir@lzencorp.com, lzencorp.com;
Web Site: www.lzencorp.com
