China Direct Industries, a U.S. owned holding company operating in China in two core business segments, pure magnesium production and distribution of basic materials, has announced that it has received several contracts to sell pure magnesium ingot valued at approximately $9.6 million. The contracts, call for delivery by the end of calendar year 2010, were derived through its IMG sales and marketing unit.
China Direct Industries launched International Magnesium Group, "IMG," in 2009 in an effort to create an international brand to be known for quality and reliability in magnesium related products. Through IMG we have unified our marketing efforts for our magnesium operations. IMG focuses on building long term relationships and securing long term contracts. IMG derived one of these contracts through the utilization of an innovative new cost indexed pricing formula that management believes may someday be the benchmark for the way the industry currently prices its magnesium products.
Commenting on the contracts, Dr. James Wang, Chairman and CEO of China Direct Industries, Inc., stated, "We are excited to have received these orders through the direct marketing efforts of IMG. We believe that by marketing IMG as a leading manufacturer and a U.S. public company that stands behind our pricing guarantee and shipment commitments, we can establish a competitive advantage in the magnesium industry. Additionally, we believe our pricing strategy will enable market stabilization which is critical to the long term health of our industry. These contracts represent a positive step toward our efforts to gain market share through strong long term relationships as the global demand for magnesium continues to improve."
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DATE
Jul 28.10 
China Direct Industries Receives New Magnesium Contracts Valued at $9.6 Million Through Its IMG Marketing Unit