WUHAN, China, Sept. 20, 2018 /PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced that the ground breaking ceremony of Hubei Henglong KYB Automobile Electric Steering System Co., Ltd. ("Hubei KYB"), a joint venture between CAAS and Japan KYB Co., Ltd., was held on September 17, 2018 in the Jingzhou Development Zone. Hubei KYB was formed to design, produce and service automotive electric power steering ("EPS") system products.
The groundbreaking ceremony was hosted by Zhou Hanzhong, director of the Jingzhou Development Zone Management Committee. Hanlin Chen, Chairman of the Board of Directors of CAAS, and Qizhou Wu, CEO, jointly laid the foundation for the development zone, and together with other CAAS and KYB executives laid the foundation for the joint venture.
Members of the Standing Committee of the Jingzhou Municipal Committee, senior officials of the Jingzhou Development Zone and Jingzhou Investment Promotion Bureau, senior executives of CAAS and senior executives of Japan KYB Corporation Auto Parts Business Division, all attended the groundbreaking ceremony.
At the ceremony, Mr. Ito Yuji, Japan KYB's representative and the newly appointed General Manager of Hubei KYB, commented, "CAAS is a leader in one of the most prominent, fast-growing global markets in the world. We amassed the largest market share in China's power steering market, and are also developing and manufacturing electric power steering systems. We are convinced that by uniting the R&D programs of both companies, we will provide advanced EPS products for customers in China as well as global markets."
Japan KYB Co., Ltd. is a listed company (Tokyo Stock Exchange: 7242) specialized in integrating vibration control, electronic control, power control and system technology with hydraulic technology as its core. Founded in 1919, KYB is committed to the research and development and manufacture of special systems for automotive-related products, hydraulic equipment, aircraft and ships. KYB has been engaged in the development and manufacturing of EPS for 30 years. The planned total investment for the joint venture is RMB 960 million. It is expected that by 2027 (the 10th year of the company's establishment), Hubei KYB will achieve an annual output capacity of 5 million EPS units.
Mr. Qizhou Wu, chief executive officer of CAAS, commented, "Hubei KYB will transform CAAS into a more powerful market leader in the Chinese EPS market, and enable us to rapidly penetrate the global markets. Our manufacturing capacity, engineering capabilities and large customer base will be crucial to the success of Hubei KYB in China and abroad. Hubei KYB will also immediately gain access to KYB's Japanese customers in China, with the potential to export to international markets as well."
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.
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.
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SOURCE China Automotive Systems, Inc.