NEW ALBANY, Ohio, July 8 /PRNewswire-Asia/ -- Commercial Vehicle Group, Inc. (Nasdaq: CVGI) today announced that it has been selected by XCMG, a leading Chinese construction machinery manufacturer, as one of two key seat suppliers for the XCMG family of products. The Company will provide a range of construction seating products for multiple XCMG vehicle lines including mobile cranes, rollers, wheel loaders, excavators, graders, truck cranes and concrete pumps.
The Company expects to begin production of seats designated for XCMG's crane products in the third quarter of 2010 at its facility in Shanghai, China and intends to ramp up additional production across all other XCMG construction vehicle lines over the next 12 months. The Company estimates that it will ultimately supply approximately 70 percent of XCMG's seating requirements for its family of product lines.
The Company also plans to establish a warehouse/distribution center near XCMG's base in Xuzhou, China to support XCMG as well as other customers in China.
The Company currently estimates the annualized revenue from this additional business to be in the range of $4 to $6 million.
Mervin Dunn, President and Chief Executive Officer for Commercial Vehicle Group remarked, "We are very pleased to be awarded this new business as it demonstrates our ability to compete and grow in one of the most vibrant and growing markets in the world. More than bringing new revenue, it supports our long-term goals to diversify our product line and expand our geographic footprint."
W. Gordon Boyd, President of Seating Systems added, "This new business award is in line with the aggressive growth targets established for our China operations. XCMG is currently ranked as one of the largest construction machinery producers in China, and this new agreement represents a great opportunity for us, as we become a key supplier to another leader in the construction industry with a large and established distribution system in a key growth market."
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group is a leading supplier of fully integrated system solutions for the global commercial vehicle market, including the heavy-duty truck market, the construction and agriculture markets and the specialty and military transportation markets. The Company's products include static and suspension seat systems, electronic wire harness assemblies, controls and switches, structures and components, interior trim systems (including instrument panels, door panels, headliners, cabinetry and floor systems), mirrors and wiper systems specifically designed for applications in commercial vehicles. The Company is headquartered in New Albany, OH with operations throughout North America, Europe and Asia. Information about the Company and its products is available on the internet at http://www.cvgrp.com .
About XCMG
XCMG, located in Xuzhou, China was founded in 1989 and is a leading manufacturer of high-quality construction machinery including construction lifting equipment, road machinery, road and maintenance machinery, compaction equipment, loaders, bulldozers, graders, excavators, concrete pump machinery, railway construction, aerial fire-fighting equipment, specialty vehicles, trucks and other engineered mechanical parts.
Forward-Looking Statements
This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," or similar expressions. In particular, this press release may contain forward-looking statements about Company expectations for future periods with respect to production, revenue growth and the establishment of a distribution center in China. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perspective on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to: (i) general economic or business conditions affecting the markets in which the Company serves; (ii) the Company's ability to develop or successfully introduce new products; (iii) risks associated with conducting business in foreign countries and currencies; (iv) increased competition in the heavy-duty truck market; (v) the impact of changes in governmental regulations on the Company's customers or on its business; (vi) the loss of business from a major customer or the discontinuation of particular commercial vehicle platforms; (vii) the Company's ability to obtain future financing due to changes in the lending markets or its financial position; and (viii) various other risks as outlined under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for fiscal year ending December 31, 2009. There can be no assurance that statements made in this press release relating to future events will be achieved. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements.
