Breaking News: China Direct Industries, Inc. (NASDAQ: CDII) launches CDII Trading, a wholly owned U.S. based industrial commodities trading company. The company, a U.S. owned, rapidly growing holding company operating in China in two core business segments, pure magnesium production and distribution of basic materials, issued a press release this morning announcing 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.

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."

On June 16th, 2009, China Direct Industries, Inc. announced that its Basic Materials segment has received several sales contracts for the delivery of various synthetic chemicals and reinforcing steel bars which have the potential to generate approximately $30.5 million in 2009. The contracts come as management of this segment sees improvements in its business outlook as China's economy begins to show signs of recovery. With the addition of these sales contracts, management now believes revenue derived from its basic materials segment should improve in 2009 compared to 2008 and range between $65 and $75 million, an increase of over 25%.

The stock closed yesterday at $1.54 a share.

For an in-depth profile of China Direct Industries, visit http://www.wallstreetnewsalert.com/view-company-profiles.php?profile=CDII_072109.