China Ceramics Co. Ltd. (CCCL) Completes First Phase of Expansion to Significantly Increase Capacity

QualityStocks would like to highlight China Ceramics Co. (NASDAQ: CCCL), formerly China Holdings Acquisition Corp., a leading manufacturer of ceramic tiles in China. The company's ceramic tiles are used for exterior siding, interior flooring, and design in residential and commercial buildings.

In the company’s news yesterday,

China Ceramics Co. Ltd. announced it has completed the first phase of enhancements at its Hengda facility, representing the first of a series of expansion phases to increase capacity.

The first stage increases Hengda facility’s capacity to 32.2 million square meters per year, bringing the company’s total capacity at its two facilities to 42.2 million meters per year.

The second phase of its Hengdali facility expansion is expected to be completed in the first quarter of 2011, adding an additional 14 million square meters of annual capacity, bringing total company-wide capacity to 56.2 million square meters, up about 48 percent from its capacity at the beginning of 2010.

Jiadong Huang, CEO of China Ceramics, said the company is optimistic in the Chinese economy and that the company expects to receive increased demand for its products.

“We are pleased to announce the completion of the first phase of expansion of our Hengda facility and we look forward to announce the completion of the second phase of expansion of our Hengdali facility in the first quarter of 2011,” Huang stated in the press release. “We remain confident in the outlook for the Chinese economy in general and the construction materials industry in particular over the foreseeable future. Based on our existing orders as well as feedback from our customers, we expect that our capacity expansion in the quarters ahead will be fully absorbed by increased demand for our products.”

The company said it expects to invest an additional $14 million at its Hengda facility during 2011, which will expand its capacity by 4.6 million square meters by 2012.

The third phase of expansion at the Hengdali facility is a $20 million project which is expected to be completed by the end of 2011 and will add 18 million square meters of annual capacity. In total, China Ceramics expects to have a capacity of approximately 78.8 million square meters in 2012, a 107 percent increase over its capacity at the beginning of 2010.

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