China America Holdings, Inc. Aohong subsidiary in Agreement to Distribute Thermo King Refrigeration Products
FORT LAUDERDALE, Fla., May 20, 2008 (BUSINESS WIRE) --
Company: China America Holdings Inc (CAAH)
China America Holdings, Inc. (OTCBB:CAAH), a diversified holding company operating in both the United States and China, announced today that its 56% owned subsidiary Shanghai Aohong has signed an agreement with Minnesota based Thermo King Corporation to distribute Thermo King Refrigeration Units and Compartments.
Under the terms of the agreement Shanghai Mengjin Chemical Co., Ltd. ("Mengjin"), a 60% owned subsidiary of Shanghai AoHong Chemical Co., Ltd. ("AoHong"), will distribute Thermo King transport temperature control systems for trucks, trailers, shipboard containers and railway cars as well as HVAC (Heating, Ventilating, and Air Conditioning) systems for bus, shuttle and passenger rail applications. Mengjin anticipates this new business line will generate approximately $4.3 million in revenue for 2008.
Mengjin developed this new business line in response to the growing demand from the perishable food transportation industry in China. In 2006, less than 30% of all perishable food transported in China used temperature control systems. This low usage rate was mainly attributable to a lack of regulation with regard to cold chain logistics. In August 2007, the Shanghai Municipal Bureau of Quality and Technical Supervision launched the local Technology and Management Specification for Cold Chain Logistics, which was the first regulation ever in China applicable to cold chain logistics. The industry expects these specifications will be fully enforced in 2008. Management believes that this standardization of regulations, coupled with soaring demand for refrigeration units and temperature controlled storage compartments will lead to continued growth in this industry for the foreseeable future.
"We are very excited about this new distribution agreement with Thermo King Corporation. We believe this business is very synergistic with our existing distribution channels and is part of our overall strategy to leverage our existing infrastructure through the addition of complimentary product lines. We are confident that this relationship will provide a solid contribution to our operations in 2008 and beyond," stated Dore Perler, CEO of China America Holdings.
Thermo King Corporation, based in Bloomington, Minnesota, is a division of Ingersoll Rand Company Limited, the world's leading manufacturer of transport temperature control systems for a variety of mobile applications, including trailers, truck bodies, buses, shipboard containers and railway cars. Thermo King supplies the China market from its factory in Shenzhen, China. At the present time, Thermo King has the major market share in China on independent refrigeration units equipped with an engine.
The distribution of Thermo King refrigeration units/compartments is the second new business line that Mengjin has developed in 2008. Earlier in Q1 2008, Mengjin started to distribute refrigeration lubricants branded by Emkarate R and Icematic SW owned by CPI Engineering Services, Inc., a subsidiary of the Lubrizol Corporation. Mengjin anticipates the sales of refrigeration lubricants will contribute revenue of another $4.3 million in 2008.
About China America Holdings, Inc.
China America Holdings, Inc.(TM) (CAAH) is a diversified global holdings company with operations in the U.S. and China. China America Holdings has two operating divisions.
Shanghai Aohong Industry Co., Ltd. based in Shanghai, China, is a distributor of assorted liquid coolants which are utilized in a variety of applications, primarily as refrigerants in air conditioning systems for automobiles, residential and commercial air conditioning systems, and a manufacturer of steel non-refillable cylinders. For more information, please visit http://www.shanghaiaohong.com/English/index.asp.
Sense Technologies, Inc., based in Fort Lauderdale, FL, is a provider of biometric identification solutions, and micro-sensor identification systems. Sense develops products targeting Homeland Security, and offers solutions that improve and secure many business, military, and personal processes. For more information about us, please visit our corporate website at http://www.chinaamericaholdings.com.
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Statements contained herein, other than historical data, may constitute forward-looking statements. When used in this document, the words "estimate," "project," "intends," "expects," "believes" and similar expressions are intended to identify forward-looking statements regarding events and financial trends which may affect the Company's future operating results and financial position. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the Company's actual results and financial position to differ materially from those included within the forward-looking statements. These risks and uncertainties include, but are not limited to, the Company's ability to generate meaningful revenues and achieve profitable operations; its ability to obtain necessary capital; whether biometric fingerprint technology is accepted in the marketplace; whether the Company is able to develop and successfully market products incorporating MEMS technology; whether it can compete in a challenging marketplace; and whether the Company can successfully integrate its technology with other technologies to create commercially viable products. Additional risks and uncertainties are set forth in the Company's SEC filings including its Annual Report on Form 10-KSB and registration statements filed under the Securities Act of 1933, as amended.
SOURCE: China America Holdings, Inc.
China America Holdings, Inc., Fort Lauderdale Dore Perler, CEO, 954-726-1422 Ext 101 dore@senseme.com
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Company: China America Holdings Inc (CAAH)
