New Machines and Production Techniques Increases Capacity Nearly 25 Percent
Chinese Heavy Duty Truck Demand Grew 62 Percent in the First Five Months of 2007
ZHEJIANG, China, July 3 /Xinhua-PRNewswire/ -- SORL Auto Parts, Inc. (Nasdaq: SORL), a leading manufacturer and distributor of commercial vehicle air brake valves as well as other auto parts in China, today announced that as of early June 2007, it has successfully installed new equipment to increase production capacity and to meet the growing demand from large OEM customers in China.
The Company installed 10 additional die casting machines, added 47 computerized numerical control machines to 198 machines previously in use, purchased 4 new tooling machines for clutch servo and streamlined the production facility to increase the total capacity by nearly 25%. All equipment completed testing and has begun mass production. The Company plans to further invest in new equipment and continue to expand capacity in the second half of 2007.
According to the China Association of Automobile Manufacturers (CAAM), the Chinese commercial vehicle sector experienced a solid 24% growth in the first five months of 2007. In particular, because of accelerating growth in domestic construction prior to the Beijing Olympics and demand for Chinese trucks from other emerging markets, heavy-duty truck OEMs posted a robust 62% growth. Up to May, SORL grew overall sales by 31.6% and the sales to OEM increased by nearly 68%, in comparison with the same period of 2006.
In response to high growth in the Chinese heavy duty truck market, SORL also made a number of key adjustments to expedite new product R&D, enhance unit production efficiency, lower the product defect ratio and shorten the overall logistic cycle.
Chairman and CEO of SORL, Xiaoping Zhang, commented, "While we are expanding capacity, we also continue to focus on quality assurance." Ten computerized automated test machines have also been installed and fully operated. The Company expects that by the end of 2007, a total of 50 computerized automated test machines will be in operation to ensure that the high quality of SORL's products is maintained. "The implementation of computerized automated testing procedures will help maintain our quality control. We are very proud to become one of the first auto part producers in China to utilize such technology for conducting quality tests." Mr. Zhang concluded.
About SORL Auto Parts
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 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. 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 consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time.
