HARBIN, China, Jan. 5 /PRNewswire-Asia-FirstCall/ -- Harbin Electric, Inc.
("Harbin Electric" or the "Company", Nasdaq: HRBN), a leading developer and
manufacturer of a wide array of electric motors in the People's Republic of
China, today announced that its self-developed high efficiency linear motor
(LM) propulsion system powering China's first domestically developed and
manufactured LM driving metro train was successfully tested and validated at
Changchun Railway Vehicles Co. Ltd. ("CRC"), Changchun, China. This
break-through for China is the result of more than two years of joint efforts
between Harbin Electric, the Institute of Electrical Engineering of Chinese
Academy of Sciences ("IEECAS") and CRC.
One of the core engineering systems used in this new metro train -- the
high efficiency LM propulsion system based on the advanced linear induction
motor technology -- is developed and manufactured by Harbin Electric.
A ceremony was held on December 22, 2009 in Changchun to celebrate this
accomplishment with the guests taking a test ride on the train. China Central
Television ("CCTV") and other media reported and celebrated this important
technological achievement, which is part of China's efforts to develop its own
advanced technology in many sectors of its fast growing economy. CCTV
stressed that "the successful development of this LM driving metro train ranks
China as the third country in the world after Canada and Japan to master the
LM technology for a scaled production of LM driving transit system. Harbin
Electric -- working jointly with IEECAS and CRC -- took only two years to
successfully master the new technology."
Compared to the traditional rotary motor propelled metro transit system
widely in use in the world, the LM driving metro train provides higher
performance efficiency with lower energy consumption. It can negotiate steep
grades and cope with tight curves and corners, lower maintenance cost, provide
a safer ride under severe whether conditions such as rain and snow, and is
quieter and more comfortable. It is environmental friendly and contributes to
making cities greener. Additionally, due to the simplicity of the LM
propulsion system, the vehicle body is more compact, reducing the cross
section of underground tunnels by about 40% and accelerating construction of
the tracks, thus providing significant cost savings.
"We are extremely proud of our successful participation in China's
development of a technologically advanced urban metro transit industry. The
first 'made-in-China" LM metro train relies on our proprietary technology and
has met international standards, with significant lower production costs than
similar foreign products. With the success of this trial production, I
believe that Chinese enterprises have entered into the high-end LM driving
metro transit market and possess the skills and strength necessary to compete
with world-class metro rail car manufacturers," said Mr. Tianfu Yang, Chairman
and CEO of Harbin Electric.
Mr. Yang continued, "With the inherent technological and economical
advantages, LM propulsion technology has become more popular than ever for the
construction of metro transit systems. Many cities around the world are now
turning to this mass transit technology instead of more conventional rotary
motor propelled metro systems. China is accelerating the build up of its
urban mass transportation infrastructure with the launch of the high speed LM
driving metro train system in response to the need for rapid, efficient and
cost-effective urban transportation. According to People's Daily, China has
approved plans to build subways in 22 cities for a total investment of RMB 882
billion (~US$129 billion). Eleven cities in China currently have subways
covering a total of 835.5 km. In the next five years, China will have another
89 subways totaling 2,500 km for an investment of RMB 993 billion (~US$145
billion). Guangzhou's metro line 4 and 5 have adopted the LM propelled train
and so did the Beijing Capital International Airport Link. However these
metro lines currently rely on equipment provided by foreign manufacturers.
These made-in-China core technologies including LM propulsion technology are
expected to reduce cost to about half of the cost of imported trains and will
create substantial economic and social benefits throughout the country."
Mr. Yang concluded, "The next step for this project is to produce a
four-car train set for the Beijing Capital International Airport Link
according to the specific technical requirements for this transit system. We
expect that it will take a few months to deliver the first four-car train set.
Once the test run for the first four-car train is complete and all technical
parameters are satisfactory, we will scale up production to supply the LM
propulsion system to CRC and meet the demand for the Beijing Capital
International Airport Link. We are confident that 2010 will be another solid
year for Harbin Electric, a year that further capitalizes on our vision and
business diversification and generates increased shareholder value."
About Harbin Electric, Inc.
Harbin Electric, headquartered in Harbin, China, is a leading developer
and manufacturer of a wide array of electric motors with a focus on innovative,
customized and value-added products. Its major product lines include
industrial rotary motors, linear motors, and specialty micro-motors. The
Company's products are purchased by a broad range of domestic and
international customers, including those involved in energy industry, factory
automation, food processing, packaging, transportation, automobile, medical
devices, machinery and tool manufacturing, chemical, petrochemical, as well as
in the metallurgical and mining industries. With a recent acquisition of
industrial rotary motor business, the Company operates four manufacturing
facilities in China located in Xi'an, Weihai, Harbin and Shanghai.
As China continues to grow its industrial base, Harbin Electric aspires to
be a leader in the industrialization and technology transformation of the
Chinese manufacturing sector. To learn more about Harbin Electric, visit
Safe Harbor Statement
The actual results of Harbin Electric, Inc. could differ materially from
those described in this press release. Detailed information regarding factors
that may cause actual results to differ materially from the results expressed
or implied by statements in this press release may be found in the Company's
periodic filings with the U.S. Securities and Exchange Commission, including
the factors described in the section entitled "Risk Factors" in its annual
report on Form 10-K for the year ended December 31, 2008. The Company does
not undertake any obligation to update forward-looking statements contained in
the press release. This press release contains forward-looking information
about the Company that is intended to be covered by the safe harbor for
forward- looking statements provided by the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are statements that are not
historical facts. These statements can be identified by the use of
forward-looking terminology such as "believe," "expect," "may, "will,"
"should," "project," "plan," "seek," "intend," or "anticipate" or the negative
thereof or comparable terminology, and include discussions of strategy, and
statements about industry trends and the Company's future performance,
operations and products.
For investor and media inquiries, please contact:
Harbin Electric, Inc.
In the U.S.
Harbin Electric, Inc.
Executive VP, Finance & Investor Relations
Christensen Investor Relations
SOURCE Harbin Electric, Inc.