SORL Auto Parts Substantially Increases Production Capacity to Meet Chinese OEM Demand
03 July 2007 - 3:15AM
PR Newswire (US)
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 2
/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. DATASOURCE: SORL Auto Parts, Inc. CONTACT: Richard Cai,
SORL Auto Parts, Inc., +86-577-6581-7720, ; Christopher Chu, The
Global Consulting Group, +1-646-284-9426,
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