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ShengdaTech Introduces NPCC for Color Ink Jet Paper

Wednesday 02. January 2008 - ShengdaTech Inc. ("ShengdaTech" or "The Company") (NASDAQ:SDTH) a leading manufacturer of nano precipitated calcium carbonate ("NPCC") and coal-based chemical products in the People's Republic of China ("PRC"), today announced it has developed a new NPCC product, NPCCB-100, for use in color ink jet paper.

NPCCB-100 was developed by ShengdaTech’s Research and Development (R&D) Center in Shanghai in collaboration with Jinan Anne Paper Co., Ltd., a subsidiary of Xiamen Anne Paper Co., Ltd. (“Anne Paper”). The new NPCC product is used in surface coating for top-grade color ink jet paper. Surface coatings are used on a variety of paper to obtain a certain look, feel, printability and readability. The use of NPCCB-100 in color ink jet paper increases whiteness, brightness, opacity, smoothness, and rate of ink absorption while enhancing the strength of paper. In addition to improving the overall quality of color ink jet paper, incorporating NPCC in coating can reduce production cost when reducing the amount of kaolin or titanium used.

“We are excited with the breakthrough of our NPCC product for use in color ink jet paper. This is a major development in our efforts to expand NPCC for use in paper production,” commented Mr. Chen, CEO of ShengdaTech. “Our R&D Center remains dedicated to expanding the applications of NPCC in paper manufacturing, including the use of NPCC in coating for a variety of paper grades and as a filler used in paper manufacturing. NPCC as a filler can reduce the amount of pulp required, thereby lowering cost while improving the paper’s optical and printing qualities. Our R&D Center is also working closely with major paper mills in North America in an effort to expand our international market penetration.”

Anne Paper collaborated with ShengdaTech on the research and development of NPCC for use in its color ink jet paper in an effort to replace the higher cost, lower quality NPCC obtained from an international manufacturer. Anne Paper is one of the largest thermal paper and color inkjet printing suppliers in China. It is headquartered in Xiamen City, Fujian Province with 34 subsidiaries and offices throughout China, including Jinan Anne Paper Co., Ltd. in Shandong Province. Anne Paper’s product lines cover four main categories: thermal paper, carbonless printing paper, color inkjet paper and offset paper.

http://www.shengdatechinc.com
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