AAAE news
AAA Energy Enters Into Strategic Distribution Deal With Large Chinese Industrial Coating Manufacturer
Monday January 26, 9:00 am ET
GUANGZHOU, CHINA--(MARKET WIRE)--Jan 26, 2009 -- AAA Energy Inc. (OTC BB:AAAE.OB - News) (Frankfurt:AAV.F - News) (WKN A0MUFJ) announced that it has entered into a strategic sales and distribution partnership agreement with Maoming Rihua Paint Co. Ltd. ("Maoming" or the "Company") to pursue marketing, sales and distribution opportunities for Maoming products in the North American marketplace.
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Under the terms of the agreement, Maoming will allow AAA to exclusively sell its existing products as well as develop and produce new private labels for broad wholesale and retail store distribution by AAA in North America.
Maoming was founded in 1975 with its head office located in Maoming Guangdong Province, China. Since its establishment, Maoming has consistently been a leader in the paints and coatings industry in China and enjoys a reputation for product innovation and for manufacturing environmental-friendly and superior energy-saving products.
The Company's focus on product research and innovation has helped maintain its leading edge in the Chinese industrial coating industry. Maoming Rihua Paint is one of the few companies that offers patented coating solutions for practically all types of surfaces. Maoming is ISO 9001: 2000 certified and is dedicated to eliminating harmful environmental impact from use of its products. Its product range consists of roof heat insulation and seepage proof coating, inner wall and outer wall silicon-ion active self-cleaning wall coating, nano-ultra strong elastic waterproof coating, water soluble silicon-ion metal anti-corrosion paint and water soluble silicon-ion wood lacquer. Its roof heat insulation and seepage proof coating series of products are highly recognized and approved by 18 provinces in China as a "National Elite Coating Product" since 2001. Its silicon-ion active self-cleaning wall coating series of products has been authorized by the Guangdong Provincial Quality Technology Supervision Station as the province's standard coating product since May 2004.
With a manufacturing plant of over 80,000 square meters and annual production in excess of 20,000 tons, Maoming currently sells more than 30 products across China and has acquired significant market share in the coating market in Hong Kong, Macau, Taiwan, Vietnam, Pakistan, India, and New Zealand.
U.S. Demand for Industrial Coating
In the U.S., the industrial coatings market is being driven primarily by the growth of non-residential building in the architectural market as well as the replacement and refurbishment of aging infrastructure throughout the U.S. Increased activity in the industrial manufacturing market is another area that is having a positive impact on the industrial coatings market. The specialty plastics business is one such area and is primarily driven by the demand for consumer electronics. In addition, the increasingly competitive nature of the consumer electronics business has increased the use of color and effect decoration as a differentiation mechanism and is a favorable demand driver.
The U.S. market for industrial coatings as a whole is growing at approximately 2-3% per year, with the biggest growth potential in water-based technology. Regulations such as SCAQMD (South Coast Air Quality Management District), OTC and National AIM are forcing paint formulators, contractors and building and design engineers to look at waterborne technology. Although most industrial coatings are still solvent-based, the market is changing as regulations limit VOC content and coatings suppliers see greater demand for greener and more sustainable materials.
"Maoming represents a significant partnership opportunity for AAA," said Siu Man Kwan, President & CEO of AAA Energy. "We are extremely excited about the commercial prospects of distributing Maoming products, including private label opportunities, to capitalize on the current popularity of their leading edge products in the Asian marketplace."
For further information, please feel free to call Investor Relations in North America at 1 516 659 6677 or visit us at www.aaa-industries.com.
About AAA Energy Inc.
AAA Energy Inc. is a publicly traded mineral and natural resource exploration company with its head office located in China. AAA Energy Inc. aims to secure and develop a portfolio of high quality resource properties globally and is currently expanding its China focus to encompass international trade and commerce. AAA Energy Inc. trades on the NASDAQ OTC BB under the ticker symbol: AAAE.
On behalf of the Board
Siu Man Kwan, President
Forward-Looking Statements
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "likely," "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company's belief that AAA Energy Inc. can identify and successfully negotiate leases for natural and mineral resource properties in China and elsewhere, and that the Company can participate in the exploration of these resource properties as well as benefit from these business opportunities. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission.
Contact:
Contact:
AAA Energy Inc.
Investor Relations in North America:
1 516 659 6677
