Dec 7 2010
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."