• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

2008 China Frost & Sullivan Award for Growth Excellence Award Recipient - ShengdaTech, Inc.

Posted on: Monday, 15 June 2009, 00:01 CDT

SHANGHAI, June 15 /PRNewswire/ -- The 2008 China Frost & Sullivan Award for Growth Excellence was presented to ShengdaTech, Inc. (ShengdaTech) for its rapid end market expansion, innovative technology, stable quality, and successful growth strategy in the Chinese nano precipitated calcium carbonate (NPCC) market.

(Logo: http://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO)

Company Overview

ShengdaTech is a leading and fast growing Chinese manufacturer of functional materials, which first publicly listed its shares on the Over the Counter Bulletin Board in March 2006, and has traded on the NASDAQ Stock Market since May 2007. ShengdaTech commenced NPCC operations in 2001 with the installation of its first NPCC production line, which had an annual production capacity of 10 kMT in Tai'an, Shandong province. The company rapidly increased its total NPCC capacity to 190 kMT/year in April 2008 and expects to expand capacity by an additional 60 kMT/year in 2009.

ShengdaTech's NPCC products, converted from limestone, are used as functional materials in various products due to their special chemical and physical attributes. Therefore, ShengdaTech has various customers in the tire, polyvinyl chloride (PVC) building materials, ink, paint, latex, adhesive, paper and polyethylene (PE) industries in China, as well as other countries in Asia.

Fast Growing Market Revenue

The Chinese NPCC market is still in the early growth stage with less than 20 years' development and a total sales volume of 436.5 kMT in 2008. The total NPCC sales revenue in China increased to RMB1,210.3 million in 2008 from RMB636.9 million in 2005, representing a compound annual growth rate (CAGR) of 23.9 percent in that period.

The total NPCC sales revenue of ShengdaTech reached around RMB581.0 million in 2008, ranking first in the Chinese NPCC market. As the largest NPCC producer, ShengdaTech enjoyed robust NPCC revenue growth at a CAGR of 68.4 percent between 2005 and 2008, which is significantly higher than the average industry growth in China.

Excellent Growth Strategy on Downstream Penetration

ShengdaTech expanded its total NPCC capacity to 190 kMT/year in April 2008 with the addition of 60 kMT/year capacity added in Shaanxi province, China, in order to meet the rising demand for NPCC products from existing and potential customers.

Expanding end markets provides ShengdaTech a solid growth base with key focuses on rubber and plastics. The Company anticipates enormous potential market opportunities and is developing new NPCC products for use in asphalt and in surface coating of high-grade color ink jet paper. Another NPCC application in development is NPCC for use in epoxy resin. Epoxy-based materials are polymers often used in coatings, adhesives and composite materials such as those using carbon fiber and fiberglass reinforcements. The new NPCC applications are expected to create strong demand for NPCC and accelerate ShengdaTech's revenue growth in the near future.

Breakthroughs of Research and Development

The advancement of NPCC processing technologies is crucial in order to deliver value to clients. In conjunction with Tsinghua University, ShengdaTech successfully developed Membrane Dispersion technology for NPCC production, which was officially granted a patent in November 2007. The Membrane Dispersion method can result in cost reductions of up to 7.0 percent over the Ultra-gravity method of producing NPCC. The company's facility in Shaanxi and new construction at the facility in Zibo utilize Membrane Dispersion technology and employ stainless steel NPCC lines. The stainless steel equipment further increases the purity of the NPCC particles, bringing ShengdaTech another key competitive advantage over other Chinese NPCC producers.

One of the most important elements of ShengdaTech's growth strategy is to utilize the company's world-class R&D capabilities to develop new applications for NPCC. ShengdaTech has an R&D center in Pudong, Shanghai, which is dedicated to research and development of NPCC applications. The R&D team has collaborated with Jinan-Anne Paper Company to develop NPCC for use in color ink jet paper and with Tongji University to introduce NPCC used as a functional filler in asphalt pavement.

Outstanding Product Quality Control

ShengdaTech participates in the high-end of the NPCC market in China providing products of the highest quality. ShengdaTech has successfully integrated the Ultra-gravity method with a distribution control system, which allowed the company to maintain high quality products. The NPCC production facility in Tai'an was ISO 9001 certified in 2003 and its NPCC products won accolades such as "Shandong Top Brand" in 2006.

In addition, the newly developed Membrane Dispersion technology produces NPCC particles of consistent size and uniformity, resulting in superior end product performance. The Company's facility in Shaanxi Province was ISO 9001 certified in 2008. The limestone used by this facility is of very high quality.

Repeat and Referral Customers

ShengdaTech has been successful in receiving repeat customer orders with domestic clients accounting for a large percentage of the total sales. The company is expanding its international presence by targeting other countries and cooperating with overseas customers.

Customers are impressed with ShengdaTech's superior R&D capabilities and quick delivery of services. Several satisfied clients acclaim the company for consistently exceeding their expectations and never having missed a deadline. Outstanding products quality and good service are the basis of cooperation with all the customers. The Company's focus on customer satisfaction and operational excellence results in a high level repeat business and referral customers.

Conclusion

As a domestic high-end supplier, ShengdaTech is equipped with various growth advantages such as world-class R&D capabilities, outstanding quality control, and increased customer satisfaction, making it a worthy recipient of the 2008 China Frost & Sullivan Award for Growth Excellence in the Chinese NPCC market.

Award Description

The Frost & Sullivan Award for Growth Excellence recognizes a company which has demonstrated significant excellence in growth leadership. This company has consistently outperformed its competition by demonstrating higher than industry growth in the past few years. This leadership in growth may be in the form of gains in market share or through geographical and customer base expansion. The award recipient has implemented innovative strategies in this process which had significant industry impact and demonstrated thought leadership.

Research Methodology

For over 45 years, Frost & Sullivan has tracked industry developments and measurements in virtually every major business-to-business (B2B) market. Award nominees are identified for the Company of the Year Award for Excellence in Growth through market participant interviews, extensive primary research (collecting data about the nominees through interviews, surveys, observations, and analysis), and extensive secondary research (collecting data about the nominees through freely available sources, such as the internet, publications, etc.).

After identifying nominees, Frost & Sullivan analysts evaluate them based on such factors as:

• Social impact
• Overall market growth and penetration
• Profit margins
• Growth in market share
• Stock price
• Overall industry impact

Measurement Criteria

In addition to the methodology described, specific criteria are applied to determine the final award recipient. The Frost & Sullivan senior management team makes the final determination using subjective analysis and expert criteria that may include the following:

• Significant: The recipient has made an impact on the industry in the region through its growth process.
• Effective: The recipient has been highly effective in implementing growth strategies.
• Sustained: The recipient has demonstrated consistency in growth.
• Valuable: The recipient has demonstrated compelling leadership that increases value as perceived by the stakeholders (e.g., consumers, suppliers, shareholders).
• Inspirational: The recipient advances a leadership quality that influences and inspires the industry.
• Leadership: The recipient has demonstrated professional and ethical values at all times.

About Best Practices

Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices in the industry.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents. For more information about Frost & Sullivan's Growth Partnerships, visit http://www.frost.com.

Media Contact: Riona Jin Corporate Communications - China P: +86 21 5407 5836 M: +86 139 169 87828 E: riona.jin@frost.com

SOURCE Frost & Sullivan

Source: PR Newswire

More News in this Category