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December 20th, 2007
China in the 21st century conjures up another time of go-go markets, our own Gilded Age when steel, coal and capital fused to create the greatest economy in the world. While China's present boom has something to do with coal and capital, it has as much to do with nanotechnology and university partnerships.
Witness ShengdaTech, Inc. (Nasdaq: SDTH), which is applying 21st century technology to become a new leader in a decidedly old-line business. Shengdatech's leading product is nano precipitated calcium carbonate (NPCC), made from limestone broken down to particles of ~100 nanometer (nm) in size, smaller than the wavelength of visible light.
NPCC is a key filler used in rubber, plastics, paint, ink and as a coating for paper. NPCC is also a key ingredient in the manufacture of automobile tires and PVC building materials, enhancing their tensile strength and durability. Shengdatech is currently the only supplier of NPCC to China's burgeoning tire industry, and they'll buy as much as Shengdatech can make.
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