China XD Plastics Company Ltd., the largest developer, manufacturer and distributor of modified plastics, primarily for automotive applications in China, recently announced that the companyâ€™s wholly owned subsidiary, Harbin Xinda Macromolecule Material Company Limited, has entered into a non-exclusive agreement with Changchun Wanbofeng Plastics Company Limited (â€œWanbofengâ€) to distribute its newly developed carbon fiber reinforced nylon composite product.
Carbon fiber reinforced nylon composite products are mainly used in auto parts and components of mid-class and luxury vehicles. Compared to traditional modified nylon, the companyâ€™s new product provides higher performance and is more than 30 percent more cost effective for consumers over imported products. Already certified by the FAW Group Corporation, the largest automobile manufacturer and pioneer of the automobile industry in China, the company expects its carbon fiber reinforced nylon composite products to displace similar imported materials with competitive pricing over imports and offer a higher level of product customization to its customers.
Mr. Jie Han, the chairman and chief executive officer of China XD Plastics, stated, â€œHigh-end and high margin modified nylon products have been one of our key R&D initiatives for many years. The successful development of carbon fiber-reinforced nylon showcases China XD Plastics’ ability in product innovation.â€ He continued, â€œWe are also delighted to see our new product development beginning to bear fruit and being recognized by a specialty nylon product distributor in Northeast China, Changchun Wanbofeng Plastics Company Limited, only three months after we added a new distributor in North China. Through Wanbofengâ€™s sales network, we will be able to accelerate sales volume of high margin nylon products in Northeast China, thus enhancing our overall gross margin.â€