— Production Expected to Start in 2016 —
HARBIN, China, November 13, 2014 /PRNewswire/ — China XD Plastics Company Limited (NASDAQ: CXDC, “China XD Plastics” or the “Company”), one of China’s leading specialty chemical producers engaged in the development, manufacture and sale of polymer composite materials primarily for automotive applications, today provided a status update on its new manufacturing campus (“Southwest Campus”) under development in Sichuan province.
Since the groundbreaking of its Southwest Campus in December 2013, China XD Plastics has completed the government-assisted land acquisition and related relocations for the 300,000 square meter site (approximately 74 acres). Due to the site’s hilly terrain, additional ground leveling work was necessary prior to construction. The preparation took the Company approximately six months to finish what would normally take nine months to complete and was done concurrently with site design, plant intelligence plan, production process plan, landscape plan, and government approval processes.
As of the date of this release, China XD Plastics has completed the majority of construction preparation, including land surveys, building engineering and architecture plans for the state-of-the-art facility. RFPs for construction contractors are underway, preparation for the facility’s foundation is near completion and the equipment customization order was completed ahead of schedule. The Company expects to start laying the foundation for the manufacturing plant and its auxiliary facilities before the end of the year. Operations at the Southwest Campus are expected to begin in early 2016, as originally scheduled.
Jie Han, Chairman and CEO of China XD Plastics, commented, “Our Southwest Campus is an important platform for our expansion into Southwest, South and Central China, and will provide additional capacity for our sales channels in East China. These regions represent an increasingly important strategic opportunity for us as more auto and auto-parts manufacturers are expanding there. We believe having production capacity close to our customers will be a competitive advantage, allowing us to provide higher quality service more efficiently.”
Through focused R&D efforts, China XD Plastics has broadened its product offering from six major categories to eleven this year. The Company has achieved breakthroughs in biodegradable and 3D printing materials for future commercialization, which will benefit its customers’ product development and design cycles. To meet environment standards and global adoption, there is an increasing need in the marketplace for biodegradable materials. These technology advancements will provide China XD Plastics a competitive edge. Maintaining automobile applications as its core business, the Company is continuing to diversify its product offering for applications in high-speed rail, ships, and aircrafts as well as biodegradable and electronics applications.
About China XD Plastics Company Limited
China XD Plastics Company Limited, through its wholly-owned subsidiaries, develops, manufactures and sells polymer composite materials, primarily for automotive applications. The Company’s products are used in the exterior and interior trim and in the functional components of 25 automobile brands manufactured in China, including AUDI, BMW, Toyota, Buick, Mazda, and VW Passat, Golf and Jetta. The Company’s wholly-owned research center is dedicated to the research and development of polymer composite materials, and benefits from its cooperation with well-known scientists from prestigious universities in China. As of September 30, 2014, 311 of the Company’s products 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 the ongoing mix shift to more advanced products; the Company’s prospect on the construction and later, operations and development of its Sichuan manufacturing campus; legal and regulatory risks; the Company’s ability to execute its growth strategy and the effectiveness of its marketing strategy; 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 Company 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, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
China XD Plastics
Mr. Taylor Zhang, CFO (New York)
Phone: +1 (212) 747-1118
Mr. Gary Dvorchak, CFA (Beijing)
Senior Vice President
Phone (China): +86 (10) 6583-7500
Phone (US): +1 (310) 954-1123