China XD Plastics Company Inks Deal

China XD Plastics Company is down 1.5% after the company said it signed an agreement with the People’s Government of Shunqing District, Nanchong City of Sichuan Province for the production of 300,000 metric tons of bio-composite materials and additive manufacturing and 20,000 metric tons of functional masterbatch, a high-end color additive process in plastics manufacturing.

The project will be in a land area of 250 mu (equivalent to 41.2 acres), where 215 mu will be designated for bio-composite materials and additive manufacturing production and 35 mu will be designated for functional masterbatch production. The projected total capital expenditures for the project is approximately 2.5 billion RMB (estimated to be $357 million) with anticipated completion by the end of December 2018. The project will add 320,000 metric tons capacity and the Company will also benefit from favorable tax policies under China’s Go West Campaign by locating the Project in Southwest China.

By Jon Flanagan