IRVINE, Calif., July 6 /PRNewswire-FirstCall/ -- Composite Technology
Corporation (CTC) (OTC Bulletin Board: CPTCQ), a leading developer of
high-performance composite core cables for electric transmission and
distribution lines, today announced the sale of 30 kilometers (approximately
18.6 miles) of its Aluminum Conductor Composite Core ("ACCC") cable to it's
Chinese partner Jiangsu Far East Group Limited, for installation in Jiangsu
Province.
The Chairman of the board of Jiangsu Far East, Jiang Xi Pei said, "We are
delighted to be working with CTC and are confident that its ACCC technology
will play a vital role in helping to meet the growing demand for the
transmission of electricity in China. We believe that this installation will
quickly lead to very significant sales. The ACCC cable will very effectively
address many of the problems which contribute to scheduled blackouts and
related congestion. We see a huge demand for ACCC in both new construction
and in the upgrading of existing lines.
CTC also announced the commencement of testing of its ACCC cable at the
Electric Power Construction Research Institute ("EPCRI") and Shanghai Research
Institute of cable. They are both leaders in the electric power design field
in China. They will test the ACCC conductor cable over a 30 day period to
confirm certain safety and reliability minimums required under Chinese law.
You Chuan Yong, Senior Engineer at Electric Power Construction Research
Institute said, "We fully expect that CTC's cable will meet all of the testing
requirements in a timely manner and will help China meet the demands of its
electrical power distribution."
In 2004, China had the worst power shortage since the blackouts of the
1980's, which led to power outages in 24 of the country's 27 provinces and in
some of China's biggest cities. To meet the demand for improving the
transmission of electricity in China, the State Grid Corporation of China,
which controls the transmission of electricity in 22 provinces, may spend
107 billion Yuan ($13 Billion U. S. Dollars) building and repairing power
lines in 2005. In addition, China Southern Power Grid Co., the smaller of the
two state electricity distributors, may spend 30.5 billion Yuan
($3.7 billion U.S. Dollars) this year building and repairing grids and laying
nearly 3,000 miles of power lines.
Benton Wilcoxon, CEO of Composite Technology Corporation, stated, "We are
pleased to have established a presence in the dynamic China market in which
State Grid has estimated an annual transmission and distribution expenditure
in excess of $16 billion per year. As the developer of ACCC, the most
advanced and cost effective transmission cable in the industry, we see
tremendous opportunity to grow our international business while making a
meaningful contribution to the robust Chinese economy. Acceptance of our
technology within China will allow the economy to expand without the
challenges of scheduled power outages which disrupt industry and impact
commerce."
CTC's ACCC cable can increase, up to 100%, the current carrying capacity
over existing transmission and distribution systems, which can allow an
immediate increase in the power transmission within an existing power
corridor, without building a new corridor. Furthermore ACCC can dramatically
increase system reliability by virtually eliminating high-temperature sag,
thereby offering significant benefits to electric utility companies and
ultimately to their industrial, commercial and residential customers.
About Jiangsu Far East Group Limited
Jiangsu Far East Group Limited, located in Yixing City, Jiangsu, China, is
the leading manufacturer of electrical transmission and distribution cable in
China, which it sells to the regional power grids within China and some
countries around world.
About the State Grid
Established on the basis of enterprises and institutions formerly owned by
State Power Corporation of China, State Grid Corporation of China (SG) is a
special large-sized enterprise approved by the State Council to operate the
business of power transmission, transformation, distribution and other assets
of power grid. As a pilot state-holding and authorized investing Corporation
by the State Council, whose leading group is under the administration and
management of the Central Government directly, SG operates in such a manner
that the president is responsible for all major activities. At present, there
are 728 thousand employees working for SG.
About CTC:
Composite Technology Corporation is an Irvine, California based company
providing high performance composite core conductor cables for electric
transmission and distribution lines. The novel proprietary ACCC cable is
superior to existing conventional conductor products of the same diameter in a
number of key performance areas, including:
- Up to double the current carrying capacity of conventional cables
- Virtually eliminates high-temperature sag
- Uses conventional installation methods and tools
- Reduces construction costs on new lines by requiring fewer structures
- May be retrofitted on existing structures to increase current capacity
- Non-corrosive core; eliminates bi-metallic corrosion
- Reduces line losses compared to same diameter conventional cables at
same operating temperatures
CTC is establishing strategic relationships with existing cable
manufacturers for production of its ACCC cable to facilitate deployment
utilities worldwide. More information can be found at
http://www.compositetechcorp.com or by contacting James Carswell, Director of
Investor Relations, at 760-416-8628.
This press release may contain forward-looking statements, as defined in
the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for
forward-looking statements provided to companies by the Reform Act does not
apply to Composite Technology Corporation (Company). However, actual events
or results may differ from the Company's expectations on a negative or
positive basis and are subject to a number of known and unknown risks and
uncertainties including, but not limited to, competition with larger
companies, development of and demand for a new technology, risks associated
with a startup company, risks associated with international transactions,
general economic conditions, availability of funds for capital expenditure by
customers, availability of timely financing, cash flow, timely delivery by
suppliers, or the Company's ability to manage growth. Other risk factors
attributable to the Company's business segment may affect the actual results
achieved by the Company and are included in the Company's Annual Report filed
with the Commissioner on Form 10KSB for fiscal year ended September 30, 2004.
SOURCE Composite Technology Corporation
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Related links:
http://www.compositetechcorp.com
CONTACT:
James Carswell of Composite Technology
Corporation, +1-760-416-8628
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