Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - China XD Plastics Co Ltd | cxdc_8k.htm |
Exhibit 99.1
China
XD Plastics Signs Exclusive Product Development Agreement with Hafei
Dongyang
|
·
|
Agreement
for the development and supply of specialized plastics for use in electric
vehicles
|
Harbin,
PRC – July 21, 2010 – China XD Plastics Company Limited (“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 as part of an exclusive product development agreement, it has
delivered to Hafei Dongyang (“HD”), one of the leading automotive parts
suppliers in Northeast China, three tons of specialized plastic compounds to be
used in the battery casing during a pilot production for electric vehicles..In
addition, China XD Plastics will have the opportunity to receive additional
exclusive product development rights for a period of five years upon the
successful design of new specialized plastic products to be used in HD’s
plastics parts in electric vehicles.
As one of
the leading automotive parts suppliers in Northeast China, HD is a supplier of
electric vehicle parts to China Changan Harbin Hafei Automobile Industry Group
Co., LTD, one of the major auto OEMs in China. According to the
agreement, China XD Plastics will, from time to time over the next five years,
supply HD with specialized plastics to be used in a wide range of components,
including battery cases, cell cases, separators, membranes, polymer super
capacitors, composite bipolar plates, silicon wafer carriers, and plastics parts
used in charging stations and other applications.
Due to
the energy efficiency and environmental advantages of electric vehicles, the
Chinese government has made the development of the domestic electric vehicle
industry a key priority, supported by a number of programs and policies to
foster the growth of this market. According to Mr. Gang Wan, the
minister of The Chinese Ministry of Science and Technology, it is expected that
electric vehicles will account for at least 10% of total automobiles
manufactured in China by 2012 and 50% by 2030, which represents 19.5 million
units per year.
Mr. Jie
Han, Chairman and CEO of China XD Plastics, commented: “We are pleased to
announce our partnership with Hafei Dongyang. This is another significant
milestone for China XD Plastics, officially marking our entrance into the
growing electric vehicle market. We believe the electric vehicle market presents
a strong growth opportunity, and this agreement provides us with a further
opportunity to expand sales of high-value-added products in
environmentally-friendly areas. We will continue to explore opportunities with
other customers to secure our leading position in this new market. We
believe the underlying growth trends within the Chinese automotive market remain
robust, and we remain confident in our ability to continue to deliver profitable
growth.”
About
China XD Plastics Company Limited
China XD
Plastics Company Limited, through its wholly owned subsidiary, Harbin Xinda
Macromolecule Material ("Xinda"), develops, manufactures, and distributes
modified plastics, primarily for use in the production of automobile parts and
components. The Company's specialized plastics are used to produce: exterior
parts, such as automobile bumpers, rearview and sideview mirrors and license
plate parts; interior parts, such as door panels, dashboard, steering wheel,
glove compartment and safety belt components; and functional components, such as
air conditioner casings, heating and ventilation casings, engine covers, and air
ducts. The Company’s specialized plastics are utilized in more than 30
automobile brands manufactured in China, including Audi, Red Flag, Volkswagen
and Mazda. The Company’s wholly-owned research institute is dedicated to the
research and development of modified plastics, and benefits from the cooperation
with well-known scientists from prestigious universities in China. At present,
152 of 263 of Xinda’s automotive-specific modified plastic products have been
certified by one or more of the automobile manufacturers in China. For more
information please visit http://www.chinaxd.net.
Safe
Harbor Statement
This
announcement contains forward-looking statements within the meaning of the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. All
statements other than statements of historical fact in this announcement are
forward-looking statements, including but not limited to, the Company's ability
to increase the number of certifications; the Company's ability to introduce new
product applications for automobiles; the effectiveness, profitability, and the
marketability of its products; the Company's ability to successfully expand its
production capacity; the Company's ability to protect its proprietary
information; general economic and business conditions; the volatility of the
Company's operating results and financial conditions; the Company's ability to
attract or retain qualified senior management personnel and research and
development staff; and other risks detailed in the Company's filings with the
Securities and Exchange Commission (“SEC”), which are available on the SEC’s
website at http://www.sec.gov. These forward-looking statements involve known
and unknown risks and uncertainties and are based on current expectations,
assumptions, estimates and projections about the Company and its industry. The
Company undertakes no obligation to update these forward-looking statements to
reflect subsequent occurring events or circumstances, or to changes in its
expectations, except as may be required by law. Although the Company believes
that the expectations expressed in these forward looking statements are
reasonable, it cannot assure you that its expectations will turn out to be
correct, and investors are cautioned that actual results may differ materially
from the anticipated results.
|
Contacts:
|
|
|
China
XD Plastics Company Ltd.
Mr.
Taylor Zhang, CFO
Phone:
+1-212-747-1118 (New York)
Mr.
Allan Lao, IR Director
Phone:
+86-451-84346600 (Harbin)
Email:
cxdc@chinaxd.net
|
Taylor
Rafferty (US):
Mahmoud
Siddig, Director
+1
(212) 889-4350
ChinaXD@Taylor-Rafferty.com
|
###