China Direct Industries, Inc. ("China Direct Industries") (NASDAQ: CDII), a U.S. owned holding company operating in China in two core business segments, pure magnesium production and distribution of basic materials, announced today that our magnesium segment operations received new purchase contracts valued at approximately $19.2 million in the first two months of the  third quarter of fiscal 2011 that began on April 1, 2011.  Deliveries of these new orders are expected to take place throughout the remainder of fiscal 2011 and into the first quarter of fiscal 2012.  

Management sees improvement in overall performance for this segment with global demand and pricing for magnesium continuing to firm as we ramp-up production at several of our recently restarted facilities in China.  Additionally, as part of our ongoing magnesium consolidation plan, we are in late stage negotiations and completion of due diligence to acquire two additional magnesium production facilities that would add up to 32,000 metric tons of capacity to this segment.    

Dr. James Wang, Chairman and CEO of China Direct Industries, Inc., stated "We continue to see a steady growth in overall demand in the magnesium industry as we increase magnesium production at our China facilities including Baotou Changxin.  We are confident that our magnesium segment is poised to see continued improvement in results throughout the remainder of fiscal 2011 and into fiscal 2012.  We remain committed to our consolidation plan and believe these potential acquisitions will make us one of the world leaders in the production and distribution of pure magnesium."

Source:PRNewswire