China GengSheng Minerals Acquires Minority Interest in Yili Yiqiang Silicon Company

China GengSheng Minerals, Inc. (AMEX:CHGS) reports that it has signed an agreement to acquire 24.5% ownership in the Yili Yiqiang Silicon Company for RMB 15 million (approximately US$2.3 million).

The press release is quoted as saying,

“Acquiring a minority stake in Yili Yiqiang enhances our emerging fine precision abrasives products and furthers our strategy to increase our sales and margins in this segments of our business,” said Mr. Shunqing Zhang, China GengSheng’s Chairman and Chief Executive Officer, “With raw material costs high and continuing to rise as a result of tight capacity, our ability to improve the sourcing of high-quality, cost-effective green SiC was crucial to our success in this market. In addition to cost savings, we believe this investment will allow us greater control over the raw material production process, further improving the quality of the green SiC that Yili Yiqiang manufactures.”

For the complete press release, click here.