Expects Continued Growth of the Chinese Auto Industry in an Interview with Wall Street Transcript and ICIS News
HARBIN, China, March 11 /PRNewswire-Asia/ -- China XD Plastics Company Ltd. ("China XD Plastics" or the "Company"), (OTC Bulletin Board: CXDC), as the largest Chinese manufacturer of modified plastics for automotive applications, is engaged in the development, manufacturing, and distribution of modified plastics primarily for use in automotive applications, today announced that the Company’s US office representative, Mr. Kirby Zhao, was interviewed by the Wall Street Transcript and ICIS News to discuss the Company’s leading position in the industry of modified plastics in China and management’s expectation for the continued growth of the Chinese auto industry.
In the interview, Mr. Zhao quoted the projection made by Mike DiGiovanni, General Motor’s executive director of global market that auto sales in China could hit 10.7 million in 2009, more than his estimate of 9.8 million in the USA, and in January of 2009, auto sales volume in China, have surpassed sales volume in the United States for the first time. In addition, the stimulus plan announced by the Chinese government includes the implementation of tax cuts and subsidies, as well as a government mandate to gradually increase the percentage of vehicle parts to be made domestically, which is expected to contribute to a further increase in vehicle sales in China. Based on official estimates, production of automobiles in China will exceed 12 million by 2010, and China XD Plastics’ modified plastics business is well positioned to continue to benefit from the healthy growth of the automobile industry in China.
The modified plastics market for automotives in China was dominated by large international modified plastics manufacturers such as BASF from Germany, Basell and DSM from Netherlands. Modified plastics in China is a fragmented business with over 1,000 manufactures and only about 70 of them having a production capacity of over 3,000 tons. Mr. Zhao considers this to be an opportunity where the Company could benefit substantially from industry consolidation. In 2008, as the largest producer of modified plastics for automobile applications in China, the Company produced and sold over 40,000 tons of modified plastic, by 2010. Mr. Zhao expects Company’s production capacity to reach approximately 100,000 tons per year through targeted acquisitions. In addition, the Company plans to grow through selective acquisitions to expand geographic reach, customer base, and migrate into higher value added segments of the modified plastics industry, thus maintaining its position as the leading Company in the industry of modified plastics in China.
"Our goal is to become a leader in the modified plastics industry through technology improvements, state-of-the-art methods and equipment to research and develop modified plastics of the highest quality that are cost-efficient for our customers," said Mr. Jie Han, Chairman and Chief Executive Officer of China XD Plastics. "We continue to expect healthy growth for the auto industry in China and we remain confident on our ability to participate in that growth while delivering positive results for our shareholders."
About China XD Plastics Company Ltd.
China XD Plastics Company Ltd., through its wholly owned subsidiary Harbin Xinda Macromolecule Material, 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; 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. Kirby Zhao, US Representative
Tel: +1-212-747-1118 (New York)
Mr. Allan Lao, IR Director
Tel: +86-451-8434-6600 (China)
Email: ir@chinaxd.net
Web: http://www.chinaxd.net
CCG Investor Relations Inc.
Mr. Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
Mr. Ed Job, CFA
Tel: +1-646-213-1914 (New York)
Email: ed.job@ccgir.com
Web: http://www.ccgirasia.com
