SHANGHAI, March 1 /PRNewswire-Asia/ -- ShengdaTech, Inc. ("ShengdaTech" or the "Company") (Nasdaq: SDTH), the leading manufacturer of nano-precipitated calcium carbonate ("NPCC") in China, today announced that the first phase of the Company's new NPCC facility in Zibo, Shandong Province with annual capacity of 60,000 metric tons ("MT") is operating at 100% utilization rate since January, 2010.
The initial phase of the Zibo facility began production at the end of August 2009 and, as planned, quickly ramped up to 100% utilization in January 2010. ShengdaTech's current aggregate annual capacity of 250,000 MT is operating at full capacity demonstrating strong demand for the Company's wide-range of NPCC products.
The Company's Zibo facility, including 58-acres, has a total designed annual production capacity of 240,000 MT, which will be built-out in several phases. The production building currently housing Phase I provides extra space that can hold an additional 40,000 MT of capacity. The remaining 40,000 MT of capacity can be brought online with the purchase and installation of additional equipment.
"In the last few years, our management team has diligently executed our NPCC strategic plan by launching new breakthrough applications, expanding capacity, and entering new markets. Our ability to aggressively expand capacity, increase market penetration, and capture a larger market share remains a crucial part of our success," commented Mr. Xiangzhi Chen, president and CEO of ShengdaTech. "We expect 2010 to be another year of substantial growth for ShengdaTech as we broaden our geographic footprint by reaching into the high-potential Yangtze River Delta economic region with our newly acquired NPCC facility in Anhui Province. We are confident that our presence in this prospect-rich area will measurably strengthen our selling efforts domestically as well as internationally."
About ShengdaTech, Inc.
ShengdaTech is engaged in the business of manufacturing, marketing and selling nano-precipitated calcium carbonate ("NPCC") products. The Company converts limestone into NPCC using its proprietary and patent-protected technology. ShengdaTech is the only company possessing proprietary NPCC technology in China. In addition to its broad customer base in China, the Company currently exports to Singapore, Thailand, Malaysia, India and Israel. For more information, contact CCG Investor Relations directly or go to ShengdaTech's website at http://www.shengdatechinc.com .
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements regarding the significance of the Company's Zibo facility reaching 100% of utilization rate and statements regarding domestic and international growth. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include, but are not limited to, such factors as unanticipated changes in product demand especially in the tire industry, changes in composition of tires, the Company's ability to meet the planned expansion schedule for its NPCC capacity, the Company's ability to identify acquisition targets, changes to government regulations, risk associated with operation of the Company's new manufacturing facility, ability to attract new customers, ability to increase its product's applications, ability of its customers to sell products, cost of raw material, downturns in the Chinese economy, and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission. You are urged to consider these factors care in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.
For more information, please contact:
Andrew Chen, Chief Financial Officer
ShengdaTech, Inc.
Tel: +86-21-5835-8738 (China)
Email: andrew.chen@shengdatech.com
Web: http://www.shengdatechinc.com
Crocker Coulson, President
CCG Investor Relations
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
Elaine Ketchmere, Partner
Tel: +1-310-954-1345 (Los Angeles)
Email: elaine.ketchmere@ccgir.com
Web: http://www.ccgirasia.com
