China Power Equipment, Inc (CPQQ)

[Florinda]

China Power Equipment Sees No Disruption in Alloy Supply from Hitachi Metals in Japan

KEY STATEMENTS:

"Hitachi Metals, headquartered in Tokyo, Japan, is our largest supplier of amorphous alloy strip, the primary raw material for making our amorphous alloy electricity transformer cores. Hitachi Metals is the largest manufacturer of amorphous alloy in the world. Its alloy manufacturing operations are located in southern Japan, so to date they have not been affected by the earthquake, aftershocks, or the tsunami that hit northeastern Japan, according to our contracting officer at Hitachi Metals this morning.

"Hitachi Metals currently does not expect any disruption in its ability to supply amorphous alloy strip to China Power Equipment, including any significant change in the supply of electricity to its plants that might affect Hitachi's ability to supply to us.

"As we assess our future risks, although Hitachi Metal's employees and manufacturing operations were not directly affected by the natural disasters, the consequences of closing more nuclear power stations in Japan might eventually reduce Hitachi Metals' ability to produce or ship alloy to us. We believe this conclusion is quite conservative, but currently there is no way to assess this possible risk with any accuracy."

http://finance.yahoo.com/news/China-Power-Equipment-Sees-No-prnews-3009007344.html?x=0&.v=1