Storage & Operations
Taiyuan Facility - Storage and Corporate Office (Click for Photos)
Longwei's headquarters are located at the fuel depot storage facility in Taiyuan City, Shanxi Province. This facility has a total of 8 large storage tanks with a capacity to store 50,000 metric tons (approximately 18 million gallons) of petroleum products. We maintain delivery and distribution platforms, including a dedicated rail spur and a tanker truck fuel depot station at this facility. We also maintain a retail outlet at this location. The Company owns and maintains all assets at the facility.
The product sales revenue contribution from the Taiyuan facility for the fiscal years ended June 30, 2011 and 2010 were $269.7 million and $245.0 million, respectively. All of our product sales revenue earned prior to fiscal year ended June 30, 2009 were earned at this facility, which began operations in 1995.
Gujiao Facility - Storage & Customer Service (Click for Photos)
In July, 2007 the Company made an initial deposit of approximately $9.2 million on a $30.0 million purchase contract with Shanxi Heitan Zhingyou Petrochemical Co., Ltd. for this facility location in Gujiao. The Company acquired control of the facility in January 2009 and began operations in November 2009. The Company retrofitted the existing storage tanks to expand the capacity and built a new office and customer service center.
The product sales revenue contribution from the Gujiao facility for the fiscal years ended June 30, 2011 and 2010 were $188.3 million and $79.4 million, respectively.
The Gujiao facility is located in an industrial region, approximately 25 kilometers to the north of our Taiyuan facility. This facility more than doubled our total petroleum storage capacity as it became fully operational in January 2010. The facility is strategically located in a fast-growing industrial zone, providing a prime marketplace for Longwei's products. The area around Gujiao and Taiyuan is the energy center of coal, coke and electricity in Shanxi Province and in China. The additional facility allows Longwei to service customers quickly and efficiently throughout the central region of Shanxi Province.
Gujiao Facility Operations Video (Click for Video)
Huajie Facility - Storage & Customer Service (Click for Photos)
Longwei has entered into a purchase contract to purchase the assets of Huajie Petroleum located in Xingyuan Township, Fanshi County in northern Shanxi Province. The assets include fuel storage tanks with 100,000 metric ton capacity with accessory facilities and equipment, delivery and distribution platforms, including a dedicated rail spur and tanker truck fuel depot station. The purchase also includes a 3,000 square meter office building and land use rights for approximately 98 acres of land adjacent to the main regional rail line and terminal station. The Company has paid a deposit on the assets of RMB 550 million (approximately $86.5 million) through cash on hand. The total purchase price is RMB 700 million (approximately $110.1 million). The Huajie Petroleum assets are located in an industrial and mining region, approximately 200 kilometers to the north of our Taiyuan facility.
(Page Under Construction)