WUHAN, China, May 3, 2018 /PRNewswire/ -- China Automotive
Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the
"Company"), a leading power steering components and systems
supplier in China, today announced it has established a new
joint venture, Hubei Henglong KYB Automobile Electric Steering
System Co., Ltd. ("Hubei KYB"), with KYB (China) Investment Co., Ltd. ("KYB"), a wholly
owned company of Japan KYB Co., Ltd., for the development and
production of electric power steering systems ("EPS") and other
auto-related products.
Based in Jingzhou City, Hubei
Province, China, Hubei KYB
will engage in the research, development, manufacture, sales and
service of automotive electric steering systems and other
automotive products. Specific product categories include
column-type electric power steering system ("C-EPS"), gear-type
electric power steering system ("P-EPS"), rack-type electric power
steering system ("R-EPS") and other automotive EPS products.
The rights to EPS technologies from both parties will be
transferred to Hubei KYB with full technical support for the
R&D department.
Hubei KYB plans to invest approximately RMB 960 million and have registered capital of
RMB 320 million. It expects to
have an annual production capacity target of 5 million units to
significantly penetrate the Chinese and the global EPS
markets. CAAS's participation will be RMB 213.12
million for a 66.6% ownership, funded by in-kind and cash, which
include the transfer of intellectual property, equipment for EPS
production and cash. The Board of Directors will consist of
five directors, three of whom will be appointed by CAAS including
the chairman.
The joint venture will lease its operating headquarter offices
and factory buildings from the existing CAAS facilities in Jingzhou
City. Hubei KYB will establish an independent R&D
department in Wuhan City,
Hubei Province, to research and
develop new products and technologies. In addition, CAAS and KYB
plan to transfer all their current EPS business in the Chinese
market, including the business of KYB's Japanese customers in
China, to Hubei KYB.
Mr. Qizhou Wu, chief executive
officer of CAAS, commented, "This joint venture will provide great
benefits to both parties. The combination of our technologies will
enhance the performance and quality Hubei KYB's EPS products to
increase our market position in this growing market. CAAS
will also benefit by Hubei KYB suppling KYB's Japanese customers in
China in addition to the potential
to export to customers outside of Japan. Hubei KYB adds significant production
capacity to meet the demands of KYB's customers and new research
programs to build more advanced EPS systems."
About KYB
As a pioneer in hydraulic technology, KYB is active in a wide
range of fields, including automobiles, motorcycles, construction
machinery, railroad cars, aircraft, special purpose vehicles,
seismic isolation systems, vibration control dampers, and marine
equipment. By developing advanced products that combine hydraulics
with vibration control, power control, and systemization
technology, KYB has earned the trust of customers around the world.
It aims to continue earning customer and stakeholder support with
its relentless drive to create the technologies and products of
tomorrow. KYB has plants and companies in 23 countries and areas
around the world, with business segments in Automotive Components
(AC) Operations, Hydraulic Components (HC) Operations, and Others,
which includes the Special-purpose Vehicles, Aircraft Components
and the System Products and Electronics Components
Business. Net sales for the 2017 year was 355.2 billion yen.
About China Automotive Systems, Inc.
Based in Hubei Province,
the 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 eight Sino-foreign joint ventures. The Company
offers a full range of steering system parts for passenger
automobiles and commercial vehicles. The Company currently offers
four separate series of power steering with an annual production
capacity of over 6 million sets of steering gears, columns and
steering hoses. Its customer base is comprised of leading 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. in China, and Chrysler Group LLC in North America. For more information, please
visit: http://www.caasauto.com.
Forward-Looking Statements
This press release contains statements that are "forward-looking
statements" as defined under the Private Securities Litigation
Reform Act of 1995. Forward-looking statements represent our
estimates and assumptions only as of the date of this press
release. These forward-looking statements include statements
regarding the qualitative and quantitative effects of the
accounting errors, the periods involved, the nature of the
Company's review and any anticipated conclusions of the Company or
its management and other statements that are not historical facts.
Our actual results may differ materially from the results described
in or anticipated by our forward-looking statements due to certain
risks and uncertainties. As a result, the Company's actual results
could differ materially from those contained in these
forward-looking statements due to a number of factors, including
those described under the heading "Risk Factors" in the Company's
Form 10-K annual report filed with the Securities and Exchange
Commission on March 29, 2018, and in
documents subsequently filed by the Company from time to time with
the Securities and Exchange Commission. We expressly disclaim any
duty to provide updates to any forward-looking statements made in
this press release, whether as a result of new information, future
events or otherwise.
For further information, please contact:
Jie Li
Chief Financial Officer
China Automotive Systems, Inc.
Email: jieli@chl.com.cn
Kevin Theiss
Investor Relations
+1-212-521-4050
Email: Kevin.Theiss@awakenlab.com
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SOURCE China Automotive Systems, Inc.