China Direct Industries Launches CDII Trading a Wholly Owned U.S. Based Industrial Commodities Trading Company

CDII Trading to Leverage Relationships with China Direct Industries Subsidiaries and Clients

 

Deerfield Beach, FL – July 23, 2009 - China Direct Industries, Inc. (“China Direct Industries”) (NASDAQ: CDII), a U.S. owned, rapidly growing holding company operating in China in two core business segments, pure magnesium production and distribution of basic materials, announced today that it has formed CDII Trading, Inc., a wholly owned subsidiary to engage in the global purchases and sales of industrial commodities for China Direct Industries and its subsidiaries and client companies. CDII Trading will initially focus its efforts in North and South America, Russia, parts of Africa and the European Union. CDI Trading will seek to market products from China Direct Industries and its various business units as well as market and procure products for its consulting clients. CDII Trading will also seek to leverage China Direct Industries relationships in China and abroad to opportunistically trade additional complimentary products for its end customers.  The company expects to begin trading in the following product categories:

·         Petrochemicals including D2 diesel fuel, JP54 jet fuel and Mazut “M100” heavy oil

·         Mineral ores including copper, manganese, chrome, antimony, nickel ore and iron ore

·         Fertilizers including urea and NPK

·         Scrap steel including HMS1 and HMS2, used rail and pig iron

·         Tungsten bars (99.98% pure)

Commenting on the launch, Dr. James Wang, Chairman and CEO of China Direct Industries, stated, “Part of our overall strategy is to vertically integrate operations and take advantage of synergies within our organization and with our clients.  By creating CDII Trading and focusing our efforts on capitalizing on inquiries we have received internationally for our products as well as marketing to key areas in the EU and Americas, we will seek to capture additional sales opportunities and leverage all of our supplier and end customer relationships.  We believe this can significantly enhance our sales and profits in the coming years.”

 

About China Direct Industries, Inc.

China Direct Industries, Inc. (NASDAQ: CDII), is a U.S. owned, rapidly growing holding company operating in China in two core business segments, pure magnesium production and distribution and distribution of basic materials in China. China Direct Industries also provides advisory services to China based companies in competing in the global economy. Headquartered in Deerfield Beach, Florida, China Direct Industries operates 10 subsidiaries throughout China. This infrastructure creates a platform to expand business opportunities globally while effectively and efficiently accessing the U.S. capital markets. For more information about China Direct Industries, please visit http://www.cdii.net.

DISCLOSURE NOTICE:

 

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Direct Industries, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expectations regarding our ability to significantly enhance our sales and profits in the coming years and our ability to capture additional sales opportunities and leverage all of our supplier and end customer relationships.

 

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2008 and our reports on Form 10-Q.

 

Contact Information:

 

For the Company:

 

China Direct Industries, Inc.

Richard Galterio or Lillian Wong

Investor Relations

Phone: 1-877-China-57

Email: richard.galterio@cdii.net 

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For CDII Trading, Inc. product inquires

Ross Friedman

Commercial Trading Director

Phone: 1-954-363-7333 Ext328

Email: ross.friedman@cdiitrading.com