China XD Plastics Board of Directors Approves Construction Plan and Construction Budget of the New Facility
China XD Plastics Company Limited (Nasdaq: CXDC) today announced that its Board of Directors has approved the new manufacturing facility construction plan and construction budget of its subsidiary, Harbin Xinda Macromolecule Material Co., Ltd, and also approved its construction project cooperation agreement.
According to the construction project cooperation agreement, Harbin Xinda intends to commission Harbin Shengtong to build the 5 plants and new R&D Center based on the recent land purchase of nearly 50 acres at the South Harbin Industrial Park and the construction that is already in place at the site.
The total construction area is 104,180 square meters, and the total budget for this project is expected to amount to approximately RMB435 million (approximately U.S. $67 million), which includes RMB94.99 million (approximately U.S. $15 million) as a part of the land purchase and a construction project which already was commenced by Harbin Shengtong. Harbin Xinda intends to finance the project with its existing cash on hand and through additional bank loans if needed. The entire project is expected to be completed by December 30, 2011.
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