UPDATE 1-ShengdaTech Q2 results beat Street view; shares surge

* Q2 EPS $0.12 vs est. of $0.08/shr

* Q2 revenue $26.3 mln vs est. of $22.33 mln

* Shares up 18 pct in after-market trade

Aug 10 (Reuters) - Chinese manufacturer of specialty additives ShengdaTech Inc SDTH.O posted better-than-expected second-quarter results, helped by higher pricing and lower costs, sending its shares up 18 percent in after-market trade.

Net income, however, dropped to $6.5 million, or 12 cents a share, from $9.8 million, or 18 cents a share, a year ago.

Revenue fell 34 percent to $26.3 million.

Analysts expected the company to earn 8 cents a share, before items, on revenue of $22.3 million, according to Reuters Estimates.

The average selling price of the company's nano-precipitated calcium carbonate products rose 12 percent to $479 a metric ton from $427 a year earlier.

Costs of goods sold dropped 41 percent to about $15 million.

The company said it expects production on its Zibo unit to begin by the end of this month, taking its annual production capacity to 250,000 metric tons.

Shares of the Shanghai-based company rose to as much as $6.59 in trading after-the bell. They closed at $5.57 Monday on Nasdaq. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Anil D'Silva)