ZHEJIANG, China, Jan. 19 /PRNewswire-Asia/ -- SORL Auto Parts Inc. (Nasdaq: SORL) ("SORL" or "the Company"), a leading manufacturer and distributor of commercial vehicle brake systems as well as related auto parts in China, today announced that the Company has entered into two new agreements to better penetrate the agricultural, light truck and alternative energy vehicle segments in China.
SORL's management has reached a preliminary agreement to form a strategic alliance with the Shandong Shifeng Group. According to the framework agreement, Shandong Shifeng Group intends to increase its purchases of brake systems and related products from SORL during 2010. Furthermore, Shandong Shifeng plans to implement new joint product development programs with SORL to enhance Shifeng's agricultural vehicles and light truck production.
Shandong Shifeng Group is one of the largest agricultural vehicle and light-duty truck producers in China. Its main products include tri-wheel agricultural vehicles and light trucks. In response to the fast growth in the Chinese agricultural market, in 2006, Shandong Shifeng Group established Agricultural Equipment Co. Ltd. to focus on the development and manufacture of agricultural vehicles. Shifeng Chairman Mr. Yifa Liu, and General Manager Mr. Chengqiang Liu have visited SORL a number of times and Shifeng is currently a customer of SORL.
In addition to the agricultural vehicle market, SORL has also made progress in the alternative energy passenger vehicle market. SORL recently signed a joint development and multi-year supply agreement with Shenzhen Wuzhoulong Motors Co. Ltd. to supply clutch cylinders.
Shenzhen Wuzhoulong is one of the leading alternative energy bus manufacturers in China. The "Wuzhoulong" brand coach bus has over 150 vehicle models that are between 6-18 meters in length and powered by either diesel engines or hybrid engines. The Wuzhoulong brand bus has been designated as the main alternative energy bus for the upcoming Guangzhou Asian Games.
Mr. Xiaoping Zhao, SORL Chairman and CEO, commented, "Our progress with the Shandong Shifeng Group and the multi-year supply agreement with Shenzhen Wuzhoulong are good testimonials of the wide application of SORL's brake products. These developments are the best acknowledgements of the quality and technological innovation of our products. We will continue to reinforce our research and development and technological innovation to bring to our customers new products that meet their technical requirements and high-quality standard. Meanwhile, we will continue to strengthen our sales team to further pursue other opportunities in these new market segments."
About SORL
As China's leading manufacturer and distributor of automotive air brake systems and other related auto parts, 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 1000 different specifications. The Company has four authorized international sales centers in Australia, United Arab Emirates, India, 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
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:
At SORL Auto Parts, Inc.
Ben Chen
Corporate Secretary
Director of Investor Relations
Tel: +86-577-6581-7721
Email: ben@sorl.com.cn
Kevin Theiss
Grayling
Tel: +1-646-284-9409
Email: kevin.theiss@us.grayling.com
