HUBEI PROVINCE, China, Dec. 1,
2014 /PRNewswire/ -- China Automotive Systems, Inc.
(Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power
steering components and systems supplier in China, today announced that it has begun the
construction of the first stage of a facility in Sao Paulo, Brazil for the assembly of its
steering units for sale in South American markets.
CAAS began exporting to customers in Brazil in August 2012. This new facility
in Brazil will assemble complete
steering products from components exported by the Company in
China. The initial capacity is
100,000 steering units and the facility can be expanded up to
700,000 units to meet growing demand. The investment in this first
stage is expected to be approximately $3
million. Commercial operations are expected to begin in
April 2015.
CAAS is currently exporting steering products to the Brazilian
operations of China-based, Chery
Auto and a global Tier-1 vehicle manufacturer, in addition to the
aftermarket in Brazil.
Mr. Hanlin Chen, Chairman of
China Automotive Systems, commented, "We are building this facility
to accommodate the growing interest in our steering products in the
important South American markets. Chinese vehicle OEMs are
setting up operations in the South American automotive markets.
With this facility, we are positioned to supply these Chinese
automakers as well as other vehicle manufacturers in these
markets. We believe customers in South America are recognizing the value of our
high-quality, advanced steering products to their vehicles.
This facility will provide improved supply and service to
strengthen our customer relationships. We look forward to
further increasing our presence in South
America and other global automotive markets. "
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 4.5 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 31, 2014, and the
Company's Form 10-Q quarterly report for the quarterly period ended
June 30, 2014, filed with the
Securities and Exchange Commission on August
13, 2014, 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
Email: jieli@chl.com.cn
Kevin Theiss
Investor Relations
Grayling
Tel: +1-646-284-9409
Email: caas@grayling.com
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SOURCE China Automotive Systems, Inc.