China XD Plastics Company Limited, one of China’s leading players engaged in the development, manufacture, and sales of modified plastics primarily for automotive applications, today announced that Morgan Stanley Private Equity Asia (“MSPEA”) has agreed to make a $100 million equity investment for a significant minority ownership stake in the Company. The investment by MSPEA, one of the leading private equity investors in Asia, will help China XD Plastics to expand and further upgrade its production capabilities. MSPEA will also designate two members to be elected to the board of directors of the Company and the number of directors on the Board will be increased from seven to nine.
“This investment will enable us to accelerate our domestic capacity expansion and production line upgrade plans and invest in developing new products to better satisfy the demand for our products in the market. MSPEA brings international best practices and financial and capital markets expertise as well as a track record of over 18 years of success in guiding and supporting companies to achieve their strategic and financial goals,” said Jie Han, Chairman and CEO, China XD Plastics in a press release on Monday.
China XD Plastics is one of the largest domestic modified plastics players in China where the demand for automobiles is outpacing other countries. As of June, China XD had one of the largest portfolios of product certifications in the automotive modified plastics industry. China XD’s products are used in the exterior and interior trim and in the functional components of more than 70 automobile brands manufactured in China, including AUDI, BMW, Toyota, Buick, Mazda, VW Golf, Jetta, and Hafei new energy vehicles.
“MSPEA has a disciplined strategy of investing in market-leading businesses with high-quality management teams and compelling competitive advantages. We see the automotive modified plastics market in China as having attractive long-term growth prospects and China XD Plastics as having established itself as a strong and leading player in this space. We are impressed by the Company’s product development and production management capabilities as well as its experienced management team,” said Ed Huang, a Managing Director of Morgan Stanley Private Equity Asia, in the announcement press release.
For more information on China XD Plastics Company Limited, please visit http://www.chinaxd.net
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