China XD Plastics, based in the northeast city of Harbin, will increase capacity to 100,000 tons in the first quarter of 2010 from 70,000 tons. The company will boost capacity to 200,000 tons in 2011.
Chief Financial Officer Taylor Zhang said, “We expect Chinese auto sales to grow another 25 to 30% next year. We don’t want to delay production.”
Chief Executive Officer Jie Han said, “We’re targeting a market share of 25 to 40% by 2013 from the current 10%.” What is pushing this increase is the widely accepted estimate that China’s auto market will expand almost 40% this year to become the world’s biggest.
Bloomberg reports that Jie Han said China XD Plastics may buy rivals in the U.S. to increase sales and build its name recognition, He said, “We’re confident of the U.S. market.”