WEIFANG, China, June 16, 2011 /PRNewswire-Asia/ -- Xinde Technology Company (OTCBB: WTFS), a widely respected China based designer and manufacturer of internal combustion engines and parts, primarily for the $100 billion diesel engine and parts market in China, said today that following successful tests and market studies, and the granting of technical patent certification and exclusive manufacturing and distribution rights for its breakthrough diesel engine FIRCRI common rail electrically-controlled fuel injection system, the Company is confident the new system -- jointly developed with engineers at Tianjin University -- will end the technical monopoly currently enjoyed in China by foreign manufacturers in this key product category.
Supply Letter of Intent with Weichai Power
Mr. Dianjun Liu, President and Chief Executive Officer of the Company stated, "Our confidence in this very significant 'home grown' product is supported by the supply letter of intent we have concluded with Weichai Power Co., Ltd, one of the main diesel engine manufacturers in the PRC. They are prepared to purchase 200,000 sets of products yearly whenever our new diesel fuel injection system comes to market, which we currently estimate could be in approximately 18 to 24 months. At that time, we expect to be the sole domestic manufacturer of an electrically-controlled diesel fuel injection system that meets and exceeds the new emission standards that will become mandatory in China in 2015. Further, with significantly lower manufacturing costs than current foreign leaders in this market such as Bosch and Denso, we believe our new product will be quite competitive and are seeking additional supply LOA's with other domestic diesel engine manufacturers."
Euro IV and V Emission Standards Within Reach
The Company noted additionally it believes that with slight modifications, its new fuel injection system can be upgraded to meet the Euro IV/V emission standard, which is only slightly lower than the 35.5 mile per gallon standard to be adopted in the U.S. in 2016, and likely to become the standard in China in future years.
In summary, the Company believes the new Xinde fuel injection system:
- - provides for uniform fuel supply and optimal combustion, thereby reducing fuel/energy costs;
- - greatly reduces gas emissions;
- - competes on a technical and cost basis with foreign made systems currently monopolizing the diesel combustion market with domestic manufacturing costs that are expected to be at least 50% to 75% lower than production costs of competitors outside of China.
Mr. Liu concluded, "We see the new patented fuel injection system as a major addition to our already technically strong, widely recognized product line that will broaden our participation in several rapidly growing areas and open the door to new product applications and markets domestically as well as abroad."
About Xinde Technology Company
Based in China's Shandong Province in the city of Weifang, Xinde Technology Company, with fiscal 2010 revenues of $123 million, competes in three primary product segments, namely (1) fuel injection system products, (2) diesel engine products and (3) generator products. The Company has a broad range of products including non-vehicle diesel engines, diesel generators, injection pumps, injectors and three-coupling components, agricultural machinery and construction machinery which greatly reduces its comprehensive costs which, in turn, increases its competitiveness. The Company's focus is on the domestic market in China, where its customers include several of China's largest companies in the country's most rapidly growing industries. As a consequence, the Company's production volume has been growing approximately 30% annually.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
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, 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 important factors, including, but not limited to, the impact of competitive conditions and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, financing and other factors as discussed in the Company's reports filed with the Securities and Exchange Commission from time to time, In addition, the Company disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date hereof. No securities regulatory authority has either approved or disapproved the contents of this new release. This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements. The Company filings with the US Securities and Exchange Commission, including the quarterly report for the three months ended March 31, 2011 on Form 10-Q, can be viewed on EDGAR Online or www.sec.gov.
SOURCE Xinde Technology Company