News... American Lorain Announces Business Expansion and Reaffirms Outlook for 2008
JUNAN COUNTY, Shandong, China, May 12 /Xinhua-PRNewswire-FirstCall/ -- American Lorain Corporation (OTC:ALRC) (BULLETIN BOARD: ALRC) ("American Lorain" or the "Company"), an international packaged foods company based in Shandong Province, People's Republic of China ("PRC"), today announced that it has signed two contracts worth $2.3 million, with Harbin Gaotai Food Co. Ltd ("Gaotai").
The two contracts, worth $2.3 million in sales for 48 containers of processed chestnuts, will be distributed to the European market via the French food processing company, Gyma Surgeles, a Gaotai customer. Of this, the first contract for $0.5 million worth of goods will be delivered by end of June 2008. The second contract worth $1.8 million will be delivered by end of August 2008. The Company has realized $90,000 in sales of three containers of processed chestnuts under these contracts to date. Additional chestnut contracts for the European market are expected.
"We are very excited about the new opportunity we have through Gaotai to expand out European market," said Mr. Si Chen, Chief Executive Officer of American Lorain. "Expanding our presence to the European markets is a very important step in our strategy to diversify our international business risk beyond Japan and South Korea. In addition, we are glad to expand our export sales, as the export markets command higher margin than sales of similar goods to domestic markets."
In 2007, the Company's chestnut sales to the European market stood at $4.7 million or 5.8% of total sales generated by the Company. With the addition of new business generated from Gaotai, the Company is expected to increase the percentage of total sales to the European region to 8-10%, in 2008. The Company reaffirms that it expects to meet or exceed the "make-good" provision of $12.956 million in after-tax net income for fiscal year 2008 related to the May 2007 private placement.
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