Jul 14 2010
ShengdaTech, Inc. ("ShengdaTech" or the "Company") (NASDAQ:SDTH), the leading manufacturer of nano-precipitated calcium carbonate ("NPCC") in China, today provided an update on its asphalt program. The Company has established business relationships with more than ten potential asphalt customers, and recently received favorable test feedback from potential customers on its NPCC product for the large modified-asphalt market.
These positive results are due to ShengdaTech's determined efforts over the program. The Company has been developing potential customers and expects to succeed in attaining commercial orders.
Through special surface-modification processes, utilizing the Company's proprietary advanced membrane dispersion technology, co-developed with Tsinghua University, to which the Company owns the intellectual property rights, NPCC's compatibility with asphalt materials has been significantly enhanced. Testing has shown that NPCC improves the heat resistance of the base asphalt as well as enhances other asphalt properties such as spalling resistance, water stability, and wear and tear resistance. NPCC has also lowered the production cost of modified asphalt due to reduced use of SBS, while at the same time maintaining the heat resistance of the SBS-modified asphalt.
Based on relevant data, the total output of modified asphalt in mainland China has reached 2,600,000 metric tons per year in 2009. The market demand for NPCC product from the modified asphalt industry is expected to be more than 100,000 metric tons per year, and the global demand will be far more than 1,000,000 metric tons per year. With the substantial increase in investments into the domestic highways, city construction, and other infrastructure projects, the domestic market demand for modified asphalt is expected to grow significantly.
Mr. Xiangzhi Chen, ShengdaTech's Chairman and CEO, commented, "Currently, we are the only company with an NPCC product application for modified asphalt, and we have made technical breakthroughs to further enhance the properties of modified asphalt. We optimistically expect commercial orders to be initiated over the next few months as our current potential customers have been expanding the testing scale of our NPCC step by step. ShengdaTech will explore applications into other large markets, in addition to the application into modified asphalt."