RUIAN CITY, China, Oct. 25 /Xinhua-PRNewswire/ -- SORL Auto Parts, Inc. (Nasdaq: SORL; or the "Company"), a leading manufacturer and distributor of automotive air brake valves and related components in China, today announced that it has entered into a technology development agreement with Baotou North-Benz Heavy Duty Truck Co. Ltd. (“North-Benz”). With this new agreement, SORL becomes a major long-term supplier of air brake products for North-Benz.
SORL and North-Benz started their collaboration in the first half of 2007. After more than six months of trial installations and stringent testing of SORL’s air brake systems, the two companies signed the technology development agreement and formally began the comprehensive strategic partnership. The partnership will include technology research and new product development for North-Benz’s broad range of truck products. SORL’s management estimates that by next year, SORL will supply approximately 40%-50% of the air brake systems installed in North-Benz’s heavy duty trucks. The estimated value of the contract is approximately US$2 million in 2008.
Xiaoping Zhang, Chief Executive Officer of SORL, commented, “We are very excited to forge a stronger relationship with North-Benz, another leading Chinese heavy truck maker. This key milestone validates SORL’s superior product quality, strong research and development capability, and reliable after-sales support. Our strategic focus on large OEMs and market penetration will continue to benefit our revenue growth and brand name recognition.”
About Baotou North-Benz Heavy Duty Truck Co. Ltd.
Based in Baotou, Inner Mongolia Province in China, North-Benz is a Sino-foreign joint venture with Mercedes Benz and the second largest heavy-duty truck producer in China. North-Benz currently offers 3 series, 40 basic models and over 400 sub models of trucks, semi-trailers, specialty vehicles, fire trucks and construction equipment. In 2006, North-Benz produced 8,721 and sold 7,978 heavy trucks respectively.
About SORL Auto Parts, Inc.
As China’s leading manufacturer and distributor of automotive air brake valves, SORL Auto Parts, Inc. ranks first in market share in the segment for commercial vehicles weighing more than three tons, such as trucks and buses. The Company distributes products both within China and internationally under the SORL trademark. SORL ranks among the top 100 auto component suppliers in China, with a product range that includes 40 types of air brake valves and over 800 different specifications. The Company has three authorized international sales centers in Australia, United Arab Emirates, and the United States, with additional offices slated to open in other locations in the near future. For more information, please visit http://www.sorl.cn .
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, among others, those concerning our estimated sales and expected expansion of our production capacity as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products, product defects and any related product recall; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors and risks mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2006 and any subsequent SEC filings. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.
For further information, please contact:
Richard (Weihai) Cai
Investor Relations Manager
Tel: +86-577-6581-7721
Email: richardcai@sorl.com.cn
Kevin Theiss
Investor Relations
The Global Consulting Group
Tel: +1-646-284-9409
Email: ktheiss@hfgcg.com
Stacy Dimakakos
Media Relations
The Global Consulting Group
Tel: +1-646-284-9417
Email: sdimakakos@hfgcg.com
