Oct 14 2010
China Ruitai International Holdings Co., Ltd. ("China Ruitai" or the "Company") (OTC Bulletin Board CRUI), a manufacturer and distributor of cellulose ether additives for use in the production of pharmaceuticals, construction materials and adhesives, foods and beverages and cosmetics, announced that it secured a 50 ton cellulose ether contract valued at $0.5 million from ThinFilm, a Shanghai-based pharmaceutical tablet and pill coating company.
"The ThinFilm order is the result of our focus in the pharmaceutical industry where we see the greatest potential for our high-end, high-margin customized cellulose ether products," began Chairman Dianmin Ma of China Ruitai. "As we further concentrate our efforts in the segment, we hope to secure new customers, in addition to a steady flow of reorders for our Rutocel-branded cellulose ethers in China and international markets."
China Ruitai's cellulose ethers cater to a variety of industries in China including the pharmaceutical, packaged food, personal care and cosmetics, and construction industries. Depending on the end product, cellulose ethers are used as coating and binding agent for pharmaceutical drugs, a thickening agent in cosmetics, personal care and foods, a hardening agent for PVC and an adhesive for paints and glues.
As a result of increased demand for the Company's ethyl crystalline ("EC") product line from pharmaceutical customers, the Company has created a dedicated sales department for this sector based in the Company's Feicheng Headquarters in the Shandong province. EC is the Company's highest margin product line and typically sells at 50-plus percent gross margins. Average selling price of China Ruitai's organic, cotton-based cellulose are approximately $12,000 per ton.