Longwei Petroleum Investment Holdings Ltd. (OTC BB: LPIH), a RedChip China energy stock, is gaining attention from TheStreet.com – see Glen Bradford’s article “Invest in China by Starting Small.”
Glen recognizes Longwei as “one of the leading diesel, gasoline, fuel oil and solvent oil distributors/wholesalers in Taiyuan City, China.” Indeed, Longwei has the largest storage facility for their fuel products among non-government owned companies in China’s Shanxi province. This allows them to buy fuel in bulk at large discounts and also allows the company to service and deliver fuel to large customers quickly and efficiently.
Shanxi Province, where Longwei operates, is a fast-growing industrial center experiencing double-digit growth in the past several years. Shanxi Province has no oil fields or oil refineries and thus provides a unique market space for fuel oil and petroleum products. Longwei’s state-of-the-art fuel storage facility in the province consists of 14 storage tanks providing a total capacity of 50,000 metric tons. The facility also has its own railroad for the delivery of their fuel products to customers.
Longwei’s service network covers the central region of Shanxi Province, leaving the undersupplied northern and southern regions open for increased sales. In fact, Longwei is planning an expansion into another heavily industralized area, Gujiao City, in southern Shanxi Province where the company is building a 70,000 metric ton fuel storage facility and oil depot. Upon completion, the new facility will double Longwei’s storage capacity and is expected to increase revenues and earnings over the next 36 months.
Production and distribution of energy is one of China’s greatest challenges. Longwei is meeting that challenge and earning exceptional profits along the way. To learn more about Longwei Petroleum click here.
Longwei Petroleum Investment Holding Ltd. is a client of RedChip Companies, Inc. and of RedChip Visibility, a division of RedChip Companies. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. Please read RedChip’s full financial disclosure available at http://www.redchip.com/disclosures.asp?src=rcv or via the Disclosures link on this blog. None of the profiles issued by RedChip Companies, Inc., constitutes a recommendation for any investor to purchase or sell any particular security or that any security is suitable for any investor. Any investor should determine whether a particular security is suitable based on the investor’s objectives, other securities holdings, financial situation needs, and tax status. All materials are subject to change without notice.