China XD Plastics to Increase Annual Production Capacity to 70,000 Tons
HARBIN, China, April 23 /PRNewswire-Asia-FirstCall/ -- China XD Plastics Company Ltd. ("China XD" or "the Company"), (OTC:CXDC) (BULLETIN BOARD: CXDC) , as the largest Chinese manufacturer engaged in the development, manufacturing, and distribution of modified plastics primarily for use in automotive applications, today announced that the Company expects to increase its annual production capacity to 70,000 tons with the addition of 7 production lines acquired at the end of 2008.
In order to meet the increasing market demand for modified plastics used in automotive applications in China and the increase in purchase orders from its customers, the Company added 12 productions lines in 2008 from 7 production lines in 2007, bringing the total number of production lines to 19 with production capacity of 70,000 tons, an increase of 45,000 tons from 25,000 tons in 2007. The Company expects to continue expending its production capacity to meet its existing and new customer demands driven by the healthy growth in China's automobile sector.
The automotive industry environment in China remains healthy, despite the overall economic slowdown worldwide. During the first quarter of 2009, total number of automobiles sold in China reached 2.7 million according to the statistics data provided by the China Association of Automobile Manufacturers, surpassing the number of cars sold in the United States by approximately 0.5 million. In addition, the City government in Changchun, where the Company's largest end user, First Automotive Works ("FAW"), is based, announced its five-year plan to expand the city's automobile production capacity to 2 million up from 1 million in 2008 by making Changchun the largest Chinese automobile industrial park in the next five years, positioning Changchun to become the largest automobile manufacturing city in China.
With its production base of modified plastics for automotive application close to Changchun city, China XD currently holds 76 certifications granted by FAW. The plan for Changchun automobile industry development has provided a unique opportunity for China XD's future development.
"The increase of the production capacity in 2009 was strategically planned and based on our expectations for growth in the automobile industry in China," commented Mr. Jie Han, Chairman and Chief Executive Officer of China XD Plastics. "We expect this increase in our production capacity to meet the demand from our customers. Changchun government's five-year plan to develop its automobile manufacturing base will increase demand for our products and bring tremendous opportunities for China XD Plastics."
About China XD Plastics Company Ltd.
China XD Plastics Company Ltd., through its wholly owned subsidiary Harbin Xinda Macromolecule Material ("Xinda"), develops, manufactures, and distributes modified plastics, primarily for automotive applications. The Company's specialized plastics are used in the exterior and interior trim and in the functional components of more than 30 automobile brands manufactured in China including Audi, Red Flag, Volkswagen and Mazda. The Company's wholly owned research institute is dedicated to the research and development of modified plastics and benefits from technology collaboration with well-known scientists from leading Universities in China. At present, Xinda manufactures approximately 145 types of automobile-specific modified plastic products, 117 of which have been certified for use by one or more of the automobile manufacturers in China. For more information please visit http://www.chinaxd.net/ .
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance the company's activities; the effectiveness, profitability, and the marketability of its products; the Company's ability to successfully expand its production capacity; the period of time for which its current liquidity will enable the company to fund its operations; the company's ability to protect its proprietary information; general economic and business conditions; the volatility of the company's operating results and financial condition; the company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the company's filings with the Securities and Exchange Commission and available on its website at http://www.sec.gov/. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
For more information, please contact: China XD Plastics Company Ltd. Mr. Kirby Zhao, US Representative Phone: +1-212-747-1118 (New York) Mr. Allan Lao, IR Director Phone: +86-451-8434-6600 (China) Email: firstname.lastname@example.org Web: http://www.chinaxd.net/ CCG Investor Relations Mr. Crocker Coulson, President Phone: +1-646-213-1915 (New York) Mr. Ed Job, CFA Phone: +1-646-213-1914 (New York) Email: email@example.com Web: http://www.ccgirasia.com/