HARBIN, China, Dec. 23, 2013 /PRNewswire/ -- China XD Plastics Company Limited (NASDAQ: CXDC, "China XD Plastics" or the "Company"), one of China's leading specialty chemical players engaged in the development, manufacture, and sale of polymer composites primarily for automotive applications, today announced it broke ground on a 300,000 tons polymer composites production and R&D project in Southwest China that would expand production capacity by 300,000 metric tons and equipped with a professional research and development center and an independent training center.
China XD's southwest expansion project is situated in an area of 3,230,000 square feet in Nanchong City, Sichuan province, the hub of the economic circle in Chengdu and Chongqing. Within a 500-kilometer radius of the construction site, there are factories for automotive manufacturers such as First Automobile Group, Shanghai GM, Volvo, Changan Ford and Dongfeng, etc. The region is also home to industries of high-end applications that the Company has been pursuing, including China Southern Rail Corporation ("CSR") and China Northern Rail Corporation ("CNR") in the high-speed railway sector, and Xi'an Aircraft Industry (Group) Company Limited, Chengdu Aircraft Industrial (Group) Company Limited and Guizhou Aviation Industry (Group) Company Limited, etc. The mayor and municipal party secretary of Nanchong City joined the groundbreaking ceremony, marking the official commencement of the project in the southwest. At the groundbreaking ceremony, Mr. Jie Han, Chairman and CEO of China XD Plastics, said, "China XD breaking ground on a 300,000 tons polymer composites production and R&D project in Southwest China today is another critical milestone for the Company following the launch of 45,000, 120,000 and 225,000 metric tons production bases in tandem in Northeastern China. We are pleased to be here with the support of the provincial, municipal and district governments."
According to the its development plan, the Company plans to complete the project in approximately two years, funded with its existing cash, its future operating cash flows and loans. The decision to build the fourth production base follows China's 12th Five-Year Plan, which promotes green and environmental protection sectors and new material industries. The Company will benefit from favorable tax policies under China's Western Development Program by locating the project in Southwest China. The launch of the southwest base is expected to facilitate profit maximization for the Company, and on the basis that products from the northeast bases cover Northeastern and Northern China and radiate into Eastern China, this southwest base is expected to help fulfill the nationwide layout where products will cover Southwestern, Southern and Central China and further radiate into Eastern China, which will lay a solid foundation for maintaining a leading role in China's industries and as a result, help realize our transformation from a leading plastic new material enterprise in China to a leading specialty chemical player in Asia engaged in polymer composites.
About China XD Plastics Company Limited
China XD Plastics Company Limited, through its wholly-owned subsidiaries, develops, manufactures and sells polymer composites, primarily for automotive applications and secondarily for applications in the three high-end industries of high-speed railway, airplanes and ships. The Company's products are used in the exterior and interior trim and in the functional components of 80 automobiles models across 24 automobile brands manufactured in China, including AUDI, Mercedes Benz, BMW, Buick, Chevron, Toyota and Volkswagen. The Company's National Enterprise Technology Center enables the Company to maintain its core competitiveness and a leading position within the industry. 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 market penetration abilities in different regional markets; legal and regulatory risks; the construction of the Company's fourth production base and its projected annual capacity; the Company's ability to execute its growth 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
SOURCE China XD Plastics Company Limited