China XD to further expand its product mix into biobased composites


Automotive materials supplier China XD Plastics Co. Ltd. said Aug. 9 that 2nd quarter revenue rose 13.2 percent to $313.6 million Gross profit was $63.1 million, an increase of 4.6% year-on-year.

mDuring the Q2 financial earnings call last week, Jie Han, Chairman of the Board of Directors and Chief Executive Officer said: "As reported by The China Association of Automobile Manufacturers, for the first six months of 2017, auto production increased 4.6% relative to the same period last year, and we believe that our cutting-edge technologies, expanded production capabilities, new geographical positioning and major new projects will be able to capitalize on this trend."
The increase in revenues in the second quarter of 2017 was driven by growth in demand for the company’s products in the domestic China market, its efforts to expand the customer base of the new plant in Sichuan and efforts to increase overseas sales. 
Gross profit was $63.1 million for the second quarter of 2017,compared to $60.3 million for the same period of 2016, representing an increase of $2.8 million, or 4.6%.  Gross margin was 20.1% for the second quarter of 2017, compared to 21.8% for the same period of 2016, primarily due the lower gross margin of higher-end products sold in the domestic market in the current period as compared to the same period in 2016.
Just weeks ago, the company announced plans to spend nearly $600 million to expand capacity in Harbin for biocomposites materials, 3D printing materials and its traditional engineering plastics business. The agreement signed between the company’s subsidiary, Heilongjiang Xinda Enterprise Group Company Limited, and the Management Committee of Harbin Economic - Technological Development Zone refers to the production of 300,000 metric tons of biocomposite materials and will also include a 3D printing intelligent manufacture demonstration factory and a 3D printing display and experience cloud factory.
The expansion of bioplastics production in Heilongjiang comes on top of a similarly sized investment in a bioplastics and 3D printing materials in the city of Nanchong, in Sichuan province in southwest China, that the company announced in late 2016.
“These projects will help the Company to expand its product mix into biobased composites, 3D printing materials and functional masterbatch materials while maintaining our traditional petroleum-based materials, paving the path to non-auto applications and further diversifying the company's business as a key element of the Company's strategic plan,” declared Han Jie.