ZHEJIANG, China, April 7 /PRNewswire-Asia/ -- SORL Auto Parts, Inc. (Nasdaq: SORL)("SORL" or "The Company"), a leading manufacturer and distributor of commercial vehicle air brake systems as well as related auto parts in China, today announced new contract awards in the agricultural and light vehicle markets.
SORL Auto Parts (Ruili Group Ruian Auto Parts Co., Ltd.) signed a strategic supply agreement with Shandong KAMA Automobile Manufacturing Co., Ltd. ("Shandong KAMA"), to provide clutch boosters, clutch master cylinders and other air brake systems-related products. Based on current expectations, SORL believes its products will account for as much as 80% of the total products in those categories used by KAMA.
Shandong KAMA Automobile Manufacturing Co., Ltd. is one of China's industrial giants. With over 300 sales and service stations nationwide, Shandong KAMA also exports its products to over 40 foreign countries including France, Pakistan, South Africa, and the U.K. Shandong KAMA's products include micro-trucks, light-trucks, medium-trucks, and heavy-trucks and agricultural vehicles. Shandong KAMA has estimated its annual production will be 150,000 vehicles in 2010 and 200,000 units in 2011, with micro-truck, light-truck and agriculture vehicles comprising the majority of the products.
In addition, SORL Auto Parts has been selected as a key supplier by the Shandong Wuzheng Group. SORL estimates its products supplied to Wuzheng Group will reach 20 million RMB in 2010, doubling the amount in 2009.
Shandong Wuzheng Group is a leading domestic manufacturer in the agricultural and light-truck vehicle sectors. Wuzheng carries over 1,000 types of products. Its main products include three-wheeled vehicles, agricultural machinery, electric cars, auto parts, etc. Wuzheng's trademark has received the "Famous Trademark of China" from the State Administration for Industry & Commerce of the People's Republic of China (SAIC). The Aochi truck was the sole recipient of the "2010 China Light-Truck Annual Award". Shandong Wuzheng has estimated its annual production of three-wheel vehicles for 2010 to be 300,000 units, with micro-trucks, light-trucks and medium-trucks exceeding 60,000 units. Shandong Wuzheng has been recognized as one of the most promising enterprises in China's machinery industry.
Mr. Baojian Tao, SORL Auto Parts' Chief Operating Officer, commented, "Our supply contract with Shandong KAMA is a good starting point. In the future, we plan on achieving whole-vehicle supply of the air brake systems and related products, and eventually become their exclusive supplier. In 2009, SORL's supply to Wuzheng Group substantially improved. This new contract serves as a testament to the quality and technology of our products, and demonstrates the tremendous growth potential we have in China's agriculture vehicle market."
SORL Auto Parts, Inc.
As China's leading manufacturer and distributor of automotive air brake systems and other related auto parts. SORL Auto Parts, Inc. ranked No. 1 for market share in the segment for commercial vehicles, such as trucks and buses. The Company distributes products both within China and internationally under the SORL trademark. SORL is listed among the top 100 auto component suppliers in China, with a product range that includes 40 categories with over 1000 specifications in air brake system, air controlling system and others. The Company has four authorized international sales centers in Australia, UAE, India, and the United States. SORL is working to establish a broader global sales network. For more information, please visit http://www.sorl.cn .
Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "will", "believes", "expects" or similar expressions. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .
For more information, please contact:
Ben Chen
Corporate Secretary
Director of Investor Relations
Phone: +86-577-6581-7721
Email: ben@sorl.com.cn
Kevin Theiss
Grayling
Phone: +1-646-284-9409
Email: kevin.theiss@grayling.com
