HARBIN, China, Dec. 13, 2011 /PRNewswire-Asia-FirstCall/ -- China XD Plastics Company Limited (NASDAQ: CXDC, "China XD Plastics" or the "Company"), one of China's leading specialty chemical players engaged in the development, manufacture, and sale of modified plastics primarily for automotive applications, today announced the successful opening of its new production lines as part of the Company's previously announced capacity expansion plan.
The event was marked by an official opening ceremony at the Company's newly developed production facilities in Harbin, China on December 11, 2011. The ceremony included remarks from the Company's senior management, a tour of its production facilities, and the official start-up of the new production lines by Mr. Jie Han, Chairman and CEO of China XD Plastics.
Based on the Company's strategic planning, the 20 new production lines will be utilized primarily for the manufacture of higher value-added modified plastics products. Once fully ramped up, the lines will increase the Company's total production capacity by 90,000 metric tons to 255,000 metric tons per annum. The additional capacity will start to contribute to the Company's production capacity during the first quarter of 2012.
The new production lines are housed within the Company's newly-built plants in Harbin, China. As part of the development of the new production lines, the Company also completed the purchase of more than 70 sets of specialized research and development equipment to enhance its capability of higher value-added product development. The production expansion and additional research and development equipment will help China XD Plastics meet the growing demand for higher value-added modified plastics products and further diversify the Company's leading product portfolio.
Mr. Han said, "Today marks an important milestone in the Company's development, and along with our continuing investments in research and development, this new capacity is a significant part of our long-term growth strategy. The higher value-added and higher margin products manufactured on these new production lines will allow us to better accommodate the growing demand for our products and further diversify our modified plastics product portfolio. Going forward, we will continue to make strategic investments that strengthen our market-leading position and help us deliver long-term value to our shareholders."
About China XD Plastics Company Limited
China XD Plastics Company Limited, through its wholly-owned subsidiary, Harbin Xinda Macromolecule Material ("Xinda"), develops, manufactures, and sells modified plastics, primarily for automotive applications. The Company's products are used in the exterior and interior trim and in the functional components of more than 70 automobile models manufactured in China, including AUDI, BMW, Toyota, Buick, Mazda, VW, and Hafei new energy vehicles. The Company's wholly-owned research center is dedicated to the research and development of modified plastics, and benefits from its cooperation with well-known scientists from prestigious universities in China. As of September 30, 2011, 202 of Xinda's products have been certified for use by one or more of the automobile manufacturers in China.