China Direct to Supply Magnesium to Fortune Global 500 Customers In 2010

2010-01-13

China Direct Industries recently announced that it expects to begin delivery of approximately $9.4 million in pure magnesium and magnesium related products in its second fiscal quarter and throughout calendar 2010 on several contracts with Fortune Global 500 companies including a new contract with a well respected European automobile manufacturer.

The signing of an initial direct contract with a leading European automobile manufacturer is an important advancement for China Direct Industries as it looks to become the leading branded supplier of pure magnesium and magnesium related products through its International Magnesium Group, "IMG" brand. With world markets continuing to improve, management intends to step up its efforts to secure larger contracts with its current large customers as well as build its direct customer base in the automobile, steel, titanium and aluminum industries.

Commenting on the event, Dr. James Wang, Chairman and CEO of China Direct Industries, Inc. stated, "We are excited about the long term prospects for our magnesium operations in 2010 as we see continued signs that global demand for magnesium is starting to improve. We feel it is an important milestone for the company to have directly secured an initial contract with a large automobile manufacturer as part of our IMG efforts and intend to work diligently to expand this and other potential large order relationships. We continue to believe our direct sales efforts in several key industries as part of the IMG branding effort will enable us to successfully expand our share of the global magnesium market in 2010 and beyond."