The addition of the 3rd major tire customer in October really is a big deal for sdth. This is repeat business and the revenue just keeps on expanding. Current stock price does not reflect the current and potential market share sdth is developing in basic China industry segments. Here is an excerpt from the Oct 2 PR:
The newly added customer is based in Shandong Province and is one of the top ten tire manufacturers in China with approximately 7% domestic-market share. As the largest NPCC supplier to tire industry in China, ShengdaTech's proprietary method of producing NPCC using the advanced membrane-dispersion technology ensures its superior product quality Use of the Company's NPCC product provides approximately 10% to 20% overall improvement in the tire's performance, measured by increased traction wave resistance, tear resistance, brake elongation, tensile strength and aging resistance. In addition to improved performance, the use of NPCC reduces the overall tire manufacturing cost by about 3%.
"With the addition of this new customer, we are now supplying our NPCC product to three of China's top ten tire manufacturers," commented Mr. Xiangzhi Chen, President and CEO of ShengdaTech. "As is the case with all our customers, we will expand our relationship with this customer as new applications and processes are developed jointly. Developing products in conjunction with existing and potential customers builds long-term relationships, proven to be a key to our continuing success with NPCC."