ShengdaTech Introduces NPCC for Automobile Undercoating Paints

Tag : automobile paint

TAIAN CITY,Shandong,China, June 19 /Xinhua-PRNewswire-FirstCall/ --ShengdaTech Inc. ("ShengdaTech" or "The Company") (Nasdaq: SDTH) aleading manufacturer of nano precipitated calcium carbonate("NPCC") and a major manufacturer of coal-based chemical productsin Tai'an City,Shandong Province, PRC, today announced it has madea significant breakthrough in the development of a new NPCCproduct, "NPCCA301," for use in automobile undercoating paints.
NPCCA301 was developed by ShengdaTech's Research and Development(R&D) team in the Company's R&D Center inShanghai. The useof NPCCA301 improves the quality of automobile undercoating paint,reduces damage caused by stone chips, rough weather conditions, andalso prevents rusting. In addition, NPCCA301 cost advantage ofapproximately $75-$100 per metric ton has the potential to replace imported NPCCcurrently used by domestic producers of automobile undercoatingpaint. The Company estimates that the current domestic demand forNPCCA301 is around 60,000-80,000 tons annually.
"We are excited with the breakthrough of our new NPCC product andthe application area for which it has been developed. This is asignificant step in our efforts to expand the range of applicationsfor NPCC," commented Mr. Chen, President and CEO of ShengdaTech."Our R&D center remains dedicated to the high-potentialapplication area of paint manufacturing, and in that effort wesuccessfully have collaborated with two large domestic carproducers who are now using NPCCA301 in production of automobileundercoating paint for certain models. We are also in the processof sample testing the new NPCC product with four potentialcustomers. We expect to establish quickly a dominant position inthe domestic market and penetrate the international market due toour proven value proposition of providing solutions to customers tohelp them produce higher-quality products at lower costs thanmaterial used in their current manufacturing processes."
About ShengdaTech, Inc.
ShengdaTech is engaged in the business of manufacturing, marketingand selling nano precipitated calcium carbonate ("NPCC") productsand coal-based chemicals for use in various applications. TheCompany converts limestone into NPCC using its proprietarytechnology co-developed with Tsinghua University. ShengdaTech isthe only company possessing proprietary NPCC technology in China.Its NPCC products are mainly exported to countries likeSouth Korea,Singapore,Malaysia,Vietnam, etc. The Company is also engaged in themanufacture and sale of coal-based chemical products namelyammonium bicarbonate, liquid ammonia, melamine and methanol. TheCompany markets and sells its coal-based products mainly forchemical fertilizers and raw materials in the production of organicand inorganic chemical products, including formaldehyde andpesticides.
Safe Harbor Statement Under the Private Securities LitigationReform Act of 1995: Any statements set forth above that are nothistorical facts are forward-looking statements that involve risksand uncertainties that could cause actual results to differmaterially from those in the forward-looking statements, which mayinclude, but are not limited to, such factors as unanticipatedchanges in product demand especially in the PVC, polyethylene, andpaper industry, changes in composition of these industries, abilityto attract new customers, ability to increase our product'sapplications, ability of our customers to sell products, cost ofraw material, downturns in the Chinese economy, and otherinformation detailed from time to time in the Company's filings andfuture filings with the United States Securities and ExchangeCommission.
SOURCE ShengdaTech Inc.