We are a leading and fast growing Chinese manufacturer of specialty additives.
Our nano precipitated calcium carbonate (“NPCC”) products are used as
functional additives and fillers in a broad array of products due to their low
cost and the overall improved chemical and physical attributes they provide to
end products. As a market leader of high-grade NPCC products, we deploy
advanced processing technology to convert limestone into high-quality NPCC
products, which are sold to our customers in the tire, polyvinyl chloride
(“PVC”) building materials, polypropylene (“PP”) building materials, ink,
paint, latex, adhesive, paper and polyethylene (“PE”) industries. In the nine
months ended September 30, 2010, we have also generated small amounts of
revenue from the sales of asphalt products.
We commenced our NPCC operations in 2001 with the installation of our first
NPCC production line, which had an annual production capacity of 10,000 metric
tons, in Tai’an, Shandong Province. As of September 30, 2010, we have increased
our total annual NPCC production capacity to 260,000 metric tons. We believe
that we are the largest Chinese manufacturer of NPCC products in terms of net
sales for the year ended December 31, 2009.
In August 2009, we, through our wholly owned subsidiary, Faith Bloom Limited
( “Faith Bloom ”), entered into an equity transfer agreement with Anhui
Chaodong Cement Co., Ltd., a company incorporated under the laws of the
People’s Republic of China, pursuant to which Faith Bloom acquired the entire
equity of Anhui Chaodong Nanomaterials Science and Technology Co., Ltd.
(“Chaodong”), a PRC company and wholly owned subsidiary of Anhui Chaodong
Cement Co., Ltd. Chaodong was an inactive manufacturer of NPCC, and its assets
include mining rights to reserves of approximately 13.2 million metric tons of
limestone and existing buildings and equipment. The acquisition was approved
by the Chinese government in November 2009. Anhui Chaodong Cement Co., Ltd.
and Chaodong were not affiliates of our Company or any of our directors or
officers. On December 11, 2009, we completed our acquisition of Chaodong, which
has an annual production capacity of 10,000 metric tons. The name of Chaodong
was changed to Anhui Yuanzhong Nanomaterials Co., Ltd. (“Anhui Yuanzhong”) in
April 2010. Anhui Yuanzhong, which operates our Anhui facility, started
production in May 2010 after we completed certain repairs and maintenances of
the acquired facility and equipment and performed certain technological
upgrades consistent with our Zibo, Shandong facility.
In August 2009, we, through Faith Bloom, entered into a project investment
agreement with the local government of Hanshan County, Anhui Province.
Pursuant to this agreement, we agreed to invest an aggregate amount of
RMB 1,200 million (approximately $175.7 million) in three phases by January
2013, which includes the construction of NPCC production facilities with an
annual capacity of 200,000 metric tons and the purchase of land use rights for
a total area of approximately 341,335 square meters. The local government also
agreed to grant to us exclusive mining rights to limestone, and provide other
utilities and services for manufacturing purposes. We plan to utilize third
parties for mining or processing operations and do not plan to engage in any
mining or processing operations. In addition to this agreement, we also agreed
to purchase land use rights for a total area of approximately 66,767 square
meters from the local government of Hanshan County, Anhui Province for Anhui
Yuanzhong. These agreements are investment plans and are not legally binding
or enforceable under PRC law.
We established a research and development center in Pudong, Shanghai, which is
dedicated to the research and development of NPCC applications. Our research
and development center has attracted NPCC researchers and scholars with
advanced degrees in chemistry and materials science who primarily focus on
improving the quality of our existing NPCC products and developing innovative
NPCC products for new applications. As an example, we developed new NPCC
products for use in the paper and PE industries and began receiving orders from
paper manufacturers in 2007 and from PE customers in February 2008. In
addition, we began to receive orders for small quantities from asphalt
customers, and expect to begin selling our newly developed NPCC products to the
PVC plastic glove market in the near future.
We currently sell our NPCC products in Shandong Province, the Yangtze River
Delta and other parts of China. Internationally, as of September 30, 2010, we
targeted six countries for our product export: Singapore, Thailand, South
Korea, Malaysia, India and Latvia. International sales accounted for
approximately 7.0% and 2.0% of our total NPCC net sales in 2009 and the nine
months ended September 30, 2010, respectively. In July 2009, we established a
new international sales team at our headquarters in Shanghai, China. In January
2010, we strengthened our international sales and marketing efforts by
appointing Mr. Gary Cao, who has over 12 years of experience as a sales and
marketing director for leading chemical companies in China and the Asia Pacific
region, as our new international marketing director. In August 2010, we
appointed Mr. Edward Wang, who has over 14 years of experience in international
sales and marketing management. We believe international sales and marketing
will make more contribution to our business going forward.
Unit 2003, East Tower, Zhong Rong Heng Rui International Plaza,
620 Zhang Yang Road, Pudong District, Shanghai 200122
People's Republic of China
Telephone Number : 86-21-58359979
Our website is at www.shengdatechinc.com.