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China Automotive Systems, Inc. Announces Construction Ceremony for New Electric Power Steering Facility

2010-11-17 22:17 1688

WUHAN, China, Nov. 17, 2010 /PRNewswire-Asia-FirstCall/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or "the Company"), a leading power steering components and systems supplier in China, announced today that its subsidiary, Wuhan Jielong Automotive Electric Power Steering Co., Ltd., recently held a ceremony in Wuhan to begin construction of the first stage of a new facility designed to manufacture electric power steering ("EPS") units.

This new production plant is located in the Wuhan Optical Valley High-Tech Development Zone. The total investment is expected to be approximately $10 million and the facility will cover an area of 120,000 square meters. The key parts to be manufactured are core EPS parts, P-EPS assembly, and the brushless motor EPS assembly. The Company's Jinzhou plant currently has an annual EPS production capacity of 200,000 units. By 2012, the Jinzhou plant and the new Wuhan facility will have a combined annual EPS production capacity of 500,000 units. By 2013, the estimated annual EPS production capacity will be 1,000,000 units when the Wuhan plant runs at full utilization.

Also in 2012, a new R&D center with approximately 150 staff will be added to focus on the further development of EPS technology. The R&D center will advance the Company's EPS technology in terms of technology content and capabilities as part of the national energy conservation and environmental protection programs.

Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, commented, "Our goal is to become the dominant domestic manufacturer and leading brand for EPS in the fast-growing Chinese vehicle market.  EPS offers a more environmentally friendly steering system as it improves engine efficiency and may allow for a smaller engine to be used in the vehicle. We believe EPS will be one of the key drivers of our growth in the future and these new facilities will provide the resources for that growth."  

About China Automotive Systems, Inc.

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 nine 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 with an annual production capacity of over 2.5 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., BYD Auto Company Limited, 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 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: kevin.theiss@grayling.com



Source: China Automotive Systems, Inc.
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