WUHAN, China, March 16 /PRNewswire-Asia/ -- China Automotive Systems, Inc. (Nasdaq: CAAS), a leading power steering components and systems supplier in China, today announced that its wholly owned subsidiary, Jingzhou Hengsheng Automotive System Co., Ltd. (“Hengsheng”), hosted a visit of senior government officials and welcomed the government’s policy support for the auto industry.
The officials from the Hubei Provincial Government and the Hubei Provincial Ministry of Technology visited Hengsheng. Established in October 2007, this CAAS subsidiary produces high-end products mainly focused to meet the stringent quality demands of Chinese Joint Ventures and the global export market. Equipped with state-of-the-art machine tools, assembly lines, and testing equipment in a 200,000 square meter facility, Hengsheng has a designed annual production capacity of 1.3 million units. As a wholly owned foreign enterprise, Hengsheng benefits from an income tax exemption through 2010 followed by preferential tax treatment (at a 15% rate) for the following 3 years thereafter.
Mr. Qizhou Wu, China Automotive Systems’s CEO, commented, “Hengsheng is a good example for China’s statement for a world-class auto parts facility. With our North American purchase order, we have entered the global marketplace. We plan to have all our products up to global quality standards so we can sell additional products and better penetrate the multi-billion dollar market for power steering systems. We anticipate domestic OEMs are proactively revamping their vehicles’ quality standards which will require higher performance key components. We see this as our opportunity to strengthen relationships with OEMs.”
“It was an honor for the officials from the Hubei Provincial Government to visit and take a keen interest in our operations and plans. Hubei is a very important auto manufacturing hub in China as it is the home of the 2nd largest Chinese OEM, Dongfeng Motors, and the 2nd largest steel maker, Wisco. The Hubei government has been instrumental in developing the industrial infrastructure and upstream suppliers in Hubei province. We appreciate their support as we continue to develop into a global player for advanced steering technology,” Mr. Wu concluded.
About CAAS
Based in Hubei Province, People’s Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through seven Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers 4 separate series of power steering and 307 models of power steering with an annual production capacity of over 1.3 million sets, steering columns, steering oil pumps and steering hoses. Its customer base is comprised of leading Chinese auto manufacturers such as China FAW Group, Corp., Dongfeng Auto Group Co., Ltd., Brilliance China Automotive Holdings Ltd., Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd., etc. For more information, please visit: http://www.caasauto.com
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company’s operations, financial performance and condition, and the impact of acquisitions on its financial performance. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the impact of competitive products, pricing and new technology; changes in demand for the Company’s products; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, delays and cost overruns related to developing and opening new production facilities; and other factors as those discussed in the Company’s reports filed with the Securities and Exchange Commission from time to time.
For further information, please contact:
Jie Li
Chief Financial Officer
China Automotive Systems
Email: jieli@chl.com.cn
Kevin Theiss
Investor Relations
Grayling
Tel: +1-646-284-9409
Email: ktheiss@hfgcg.com
