China XD Plastics Company Ltd., the largest Chinese manufacturer of modified plastics primarily for use in automotive applications, recently announced receiving five product certifications from the FAW Group Corporation, one of the leading automobile manufacturers and vanguard of automobile industry in China during the first quarter of 2009. The product certifications allow the Company to supply five newly launched specialized modified plastic products for automotive applications directly to suppliers of parts and components for the FAW Group. The product certifications received during the first quarter of 2009 are related to modified plastics for the production of automobile interiors, exterior
and functional parts which include shell bodies for air filters, filters, radiators, car engine covers, and among others, assembled in medium and luxury vehicle models in China.
The recently received five product certifications are specific to the FAW Group's Hongqi and Besturn, both of which are popular mid-level and luxury passenger sedan models in China. All these products replace imported products which mainly come from large international modified plastic producers. The company expects to achieve a sales volume of approximately 45,000 tons in 2010 for the five newly launched products with our cost advantages over imported products.