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.
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: firstname.lastname@example.org
Kevin Theiss Investor Relations Grayling Tel: +1-646-284-9409 Email: email@example.com
SOURCE China Automotive Systems, Inc.