TAIAN CITY, China, April 14 /Xinhua-PRNewswire-FirstCall/ -- ShengdaTech, Inc. (“ShengdaTech” or “The Company”) (Nasdaq: SDTH) a leading manufacturer of nano precipitated calcium carbonate (“NPCC”) and coal-based chemical products in the People’s Republic of China (“PRC”), today announced it has successfully started production and shipment of products from its three new stainless steel NPCC lines with an annual capacity of 60,000 MT NPCC at the Xiangyang City factory in Shaanxi Province.
The new stainless NPCC lines are expected to reach full production by August, and the addition of this capacity has increased ShengdaTech’s total NPCC annual production to 190,000 metric tons. The new lines employ the Company’s proprietary Membrane Dispersion Technology, which is patent protected and co-developed with Tsinghua University. ShengdaTech constructed the new lines using stainless steel equipment instead of carbon steel equipment, which was used in the previous lines. These stainless steel equipment lines are producing NPCC by employing ShengdaTech’s exclusive application-driven formulations, and are expected to position the Company to further increase the purity of the NPCC particles, a key competitive advantage. The company is confident that the overall effect will result in a higher quality NPCC product yielding greater performance, which is essential to export applications. In addition to yielding improved purity, the stainless steel equipment requires one-third less maintenance time than the carbon steel, and has an expected life of 30 years compared to 10 years for carbon steel.
“We are very pleased to announce that the new NPCC lines have been successfully put into operation, which will help us to meet the growing demand for NPCC from current and new customers. NPCC will continue to deliver meaningful cost savings to our customers, while resulting in measurable performance improvements for their end products. These new lines solidifies our position as a market leader for NPCC in China and provides a platform for the introduction of additional international end-market applications in the future,” commented Mr. Xiangzhi Chen, President and CEO of ShengdaTech. “Our new stainless steel lines ensure an enhanced NPCC product compared to our carbon steel lines. This allows us to target customers seeking to produce high-performance final products of their own. We can now satisfy identified customer needs and successfully implement our stated strategy to penetrate international manufacturers.”
About ShengdaTech, Inc.
ShengdaTech is engaged in the business of manufacturing, marketing and selling nano-precipitated calcium carbonate ("NPCC") products and coal-based chemicals for use in various applications. The Company converts limestone into NPCC using its proprietary technology co-developed with Tsinghua University. ShengdaTech is the only company possessing proprietary NPCC technology in China. Its NPCC products are mainly exported to countries like South Korea, Singapore, Malaysia, Vietnam, etc. The Company is also engaged in the manufacture and sale of coal-based chemical products namely ammonium bicarbonate, liquid ammonia, melamine and methanol. The Company markets and sells its coal-based products mainly for chemical fertilizers and raw materials in the production of organic and inorganic chemical products, including formaldehyde and pesticides.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include, but are not limited to, such factors as challenges in expanding the Company’s export business, the expected improvements in product purity, maintenance and useable life of stainless steel equipment, unanticipated changes in product demand especially in the tire industry, changes in composition of tires, ability to attract new customers, ability to increase our product’s applications, ability of our customers to sell products, cost of raw material, downturns in the Chinese economy, and other information detailed from time to time in the Company’s filings and future filings with the United States Securities and Exchange Commission.
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