HARBIN, China, Dec. 6, 2010 /PRNewswire-Asia-FirstCall/ -- China XD Plastics Company Ltd. ("China XD Plastics" or the "Company"), (Nasdaq: CXDC), one of the leading Chinese manufacturers engaged in the development, manufacture, and distribution of modified plastics primarily for use in automotive applications in China, today announced that in conjunction with its first investor day in Harbin for institutional investors and analysts held December 3, 2010, the one year anniversary of the Company's listing on Nasdaq, the Company held a ceremony to commemorate the official opening of its newly installed production lines designated for alternative energy vehicles applications and the designation of its Macromolecule Research Institute as a Heilongjiang Enterprise Academy Member Workstation.
During the ceremony, China XD's honorable guest, Harbin Mayor Guozhang Cong, pressed the initiation button for the newly installed production lines, achieving a successful first run. In addition, Mayor Cong joined Mr. Jie Han, Chairman of China XD, in the unveiling of the official plaque commemorating the Heilongjiang Enterprise Academy Member Workstation. Other attendees who were on hand to witness the celebration of these important milestones in the Company's history included financial analysts, investors, government officials at both the provincial and municipal levels, industry experts, customers representatives, automobile OEMs, and local financial institutions and media.
The new production lines will be fully operational in January 2011, ahead of the originally scheduled launch date. With the new production lines in place, the details of the Company's capacity in 2011 are as follows:
- Theoretical capacity: 165,000 metric tons including existing 120,000 metric tons and newly installed 45,000 metric tons
- Realistic capacity (based on production lines' standard utilization rate of 80%): 135,000 metric tons including existing 100,000 metric tons and newly installed 35,000 metric tons.
China XD is currently the only non-State-Owned-Enterprise ("non-SOE") designated an Academy Member Workstation in Heilongjiang province. The government praised the Company's efforts in building a leading national-level R&D and technology innovation platform in the automotive modified plastics field. At the same time, the government officials recognized the Company's commitment to developing new plastics materials for alternative energy vehicles and other new applications, positioning it to explore potential opportunities outlined in the central government's 12th Five-Year Development Plan.
"We are very pleased to announce the success of our investor day," said Mr. Jie Han, Chairman and CEO of China XD Plastics. "The newly installed production lines designated for alternative energy vehicles applications and the opening of the Academy Member Workstation demonstrate the effective execution of our growth strategy. Going forward, the Company will maintain its commitment to R&D by leveraging the Post-Doctoral Research Station and Enterprise Academy Workstation, diversifying its product portfolio with more high-value products, securing our leading position in the automotive modified plastics industry, and maximizing shareholder value."
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 60 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 its cooperation with well-known scientists from prestigious universities in China. At present, 169 of Xinda'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 increase the number of certifications; the Company's ability to introduce new product applications for automobiles; the effectiveness, profitability, and the marketability of its products; the Company's ability to successfully expand its production capacity; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the Company's operating results and financial conditions; 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 ("SEC"), which are available on the SEC's 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 its industry. The Company undertakes no obligation to update these 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.
SOURCE China XD Plastics Company Limited