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China Direct Industries (CDII) In Agreement To Acquire Additional Magnesium Facilities

October 6, 2009 8:24 AM EDT
China Direct Industries (Nasdaq: CDII) announced that it has entered into a letter of intent with Taiyuan Yiwei Magnesium Groupto acquire remaining interest Chang Magnesium, Golden Magnesium and Baotou Changxin Magnesium subsidiaries as well as acquire certain additional facilities owned by Yiwei. China Direct believes this will crreate the largest producer of magmesium and magnesium products in the world.

These new facilities have an annual production capacity of a total of 40,000 metric tons of pure magnesium ingots, 10,000 metric tons of magnesium powder, and 10,000 metric tons of magnesium alloy.

There is currently no time table set for the completion of the transaction.

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