By: PLASTICS NEWS CHINA
March 22, 2013
HARBIN, CHINA – Compounder China XD Plastics Co. Ltd. has selected Southwestern city of Nanchong, Sichuan province for its fourth production base with 300,000 metric tons of annual capacity as well as affiliated R&D and training facilities.
The company plans to commence the construction in 2013 and complete the project in about two years.
The expansion is funded with its existing cash and cash equivalents, its future operating cash flows and certain debt financing, the company said in a news release.
By locating the facility in Southwest China, the company will benefit from favorable tax policies under China's Western Development Program.
Within a 400 kilometer radius of the site, there are factories for automotive manufacturers such as Shanghai GM, Volvo, Changan Ford, and Dongfeng as well as a good number of automotive parts manufacturers.
The region is also home to industries of high-end applications, including high-speed railway and aircraft sectors.
Chairman and CEO Jie Han expects the company to "effectively cover the entire country geographically and reach our goal of 10 percent market penetration with our major products," once the Nanchong base is in operation.
The company also plans to diversify its products from automotive to high-speed rail, ships, aircraft and other high-end sectors.