Richina Industries Announces Plans to Build Wet Blue Facility in Liaoning Province, China

July 28, 2009: Fuxin, PRC: Richina Industries, Inc., the parent company of Shanghai Leather Co., Ltd. (SLC) and Shanghai Richina Leather Co., Ltd. (SRL) today announced the signing of a letter of confirmation to build a state of the art wet blue facility in Fuxin, China. Fuxin is located in Liaoning province, an area in northern China rich in natural resources, and home to several large Chinese auto and footwear production facilities.

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Richina Industries Announces Plans to Build Wet Blue Facility in Liaoning Province, China

July 28, 2009: Fuxin, PRC: Richina Industries, Inc., the parent company of Shanghai Leather Co., Ltd. (SLC) and Shanghai Richina Leather Co., Ltd. (SRL) today announced the signing of a letter of confirmation to build a state of the art wet blue facility in Fuxin, China. Fuxin is located in Liaoning province, an area in northern China rich in natural resources, and home to several large Chinese auto and footwear production facilities.

Fuxin Mayor Pan Li Guo and Vice Mayor Allan He and their economic development team have planned to create a model leather-making zone in their township utilizing world-class environmental technology. The China Leather Industries Association is a leading advocate for the project, and Richina Industries President and CEO Bob Moore and CLIA's Chairman Madame Zhang recently met in Beijing in July to discuss Richina's future plans.

The Richina plant will be operational in late 2010, and will produce wet blue to supply their leather making operations in Shanghai. The facility, to be built on a 300-acre Richina site, will be planned and designed by a team to include several outside advisors and other resources. The BLC, a British environmental consulting firm, have signed on as full time advisors to the project. Richina is planning to incorporate state of the art environmental technology into their new wet blue facility.

According to Richard Yan, Managing Director of Richina, Inc, "our leather businesses have a long history of producing quality wet blue. The Fuxin project gives us the opportunity to again vertically integrate our business as we broaden and add value to our internal SRL and SLC supply chain. The Liaoning and Fuxin governments, especially Governor Chen ZhengGao and Mayor Pan GuoLi, and their teams have been very supportive to us during our strategic evaluation phase. We appreciate their efforts, and look forward to creating a world-class leather making operation at the Fuxin complex."

Vice Mayor Allan He of Fuxin added, "Richina Industries is a group that produces not only leather but also leather products. Fuxin Leather Industry Zone is an environmentally oriented leather making area, and the cooperation of Richina and Fuxin means a win-win with the combination of these two strong enterprises."

Richina Industries, Inc. is the parent company of Shanghai Leather Company, Ltd. (SLC), and Shanghai Richina Leather Company, Ltd. (SRL). It is comprised of a wide range of businesses including auto, footwear and garment leather production. In addition, Richina Industries manufactures footwear, garments, athletic products, chemicals and adhesives for the export and domestic Chinese markets.

In conjunction with joint-venture partner GST Autoleather, Richina's SRL unit produces car seat leather to support the expanding Asian auto market for top customers including Toyota, Chery, Peugeot and Citroen. Other global footwear and garment leather customers include Nike, Cole Haan, Johnston and Murphy, Calvin Klein, Kenneth Cole, Danier, Coach, Merrell, Patagonia, Harley Davidson, Caterpillar, Clarks, Born, HH Brown, Sperry Topsider, Rocky Brands, Rockport and Wolverine.

For further information, contact Bob Moore at robert.moore@richina.com

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Pictured at signing with Bob Moore, President and CEO of Richina Industries (center), are Justin Zhang, GST Autoleather Engineering Director (left), Li Yu Ming, Fuxin Director of Investment Promotion Bureau (center), Gary He, Director of Engineering and ETP-SRL, and Robert Liu, Chief Financial Officer-SRL.