China XD Plastics to Add High-End Modified Nylon Products
August 31 2009 - 7:00AM
PR Newswire (US)
HARBIN, China, Aug. 31 /PRNewswire-Asia-FirstCall/ -- China XD
Plastics Company Ltd. ("China XD Plastics" or the "Company"),
(OTC:CXDC) (BULLETIN BOARD: CXDC) , the largest Chinese
manufacturer in the development, manufacture, and distribution of
modified plastics primarily for use in automotive applications in
China, today announced that the Company's wholly owned subsidiary,
Harbin Xinda Macromolecule Material Company Limited ("Xinda"),
entered into a long-term non-exclusive agreement with Changchun
Wanbofeng Plastics Company Limited ("Wanbofeng") to distribute
carbon fiber reinforced nylon composite ("CFRNC"), a product newly
developed by the Company. The Company has successfully developed
CFRNC, an advanced new product over the traditional modified nylon.
Compared to traditional modified nylon, its CFRNC exhibits higher
performance while replacing imported products with over 30% savings
to its customers. CFRNC is mainly used in auto parts and components
of mid-class and luxury vehicles. The Company expects its CFRNC to
displace similar imported materials with competitive pricing over
imports and offer a higher level of service and product
customization to its customers. The new product has been certified
by the FAW Group Corporation, the largest automobile manufacturer
and pioneer of the automobile industry in China, allowing its parts
suppliers to use the Company's CFRNC in their production. In
addition, the carbon fiber-reinforced nylon can be used in
non-automobile applications, including oil fields and mining
machinery, aviation and among other industries. "High-end and high
margin modified nylon products have been one of our key R&D
initiatives for many years. The successful development of carbon
fiber-reinforced nylon showcases China XD Plastics' ability in
product innovation. We are also delighted to see our new product
development beginning to bear fruit and being recognized by a
specialty nylon product distributor in Northeast China, Changchun
Wanbofeng Plastics Company Limited, only three months after we
added a new distributor in North China," said Mr. Jie Han, the
Chairman and CEO of China XD Plastics. "Through Wanbofeng's sales
network, we will be able to accelerate sales volume of high margin
nylon products in Northeast China, thus enhancing our overall gross
margin." 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 dedicates to the researching and development of modified
plastics and benefits from the cooperation with well-known
scientist in Chinese famous college. Currently, 129 products that
Xinda manufactured 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; legal and regulatory risks associated with the share
exchange; the Company's ability to successfully expand its
production capacity; the future trading of the common stock of the
company; the Company's ability to operate as a public company; 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. Taylor Zhang, CFO Phone: +1-212-747-1118 (New York) Mr. Allan
Lao, IR Director Phone: +86-451-8434-6600 (China) Email: CCG
Investor Relations Inc. Mr. Crocker Coulson, President Phone:
+1-646-213-1915 (New York) Mr. Ed Job, CFA Phone: +1-646-213-1914
(New York) Email: Web: http://www.ccgirasia.com/ DATASOURCE: China
XD Plastics Company Ltd. CONTACT: China XD Plastics Company Ltd.:
Mr. Taylor Zhang, CFO, +1-212-747-1118 (New York), or Mr. Allan
Lao, IR Director, +86-451-8434-6600 (China), ; or CCG Investor
Relations Inc.: Mr. Crocker Coulson, President, +1-646-213-1915
(New York), or Mr. Ed Job, CFA, +1-646-213-1914 (New York), , both
for China XD Plastics Company Ltd.
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