Mahle Technology Investment (China) Co., Ltd. Business Report FY ended Dec. 2016

New Plant

-Dongfeng Behr Thermal Systems Co., Ltd. opened its new plant in Shiyan on May 18, 2016. Plant construction began in the beginning of 2015 and was completed at the end of April 2016. The company invested CNY 35 million in the first phase of the construction project, in which a 12,000-square-meter plant was set up on approximately 33,000 square meters of land. The plant is capable of producing 180,000 sets of engine cooling systems per year. (From news releases issued by multiple sources on May 20, 2016)

-In Jul. 2015, the Company's subsidiary, Behr-Hella Thermo Control (Shanghai) Co., Ltd. Shenfu Plant was established. It mainly produced automotive air-conditioningcontroller.

-Chengdu Behr Thermal System Co., Ltd. began operating on June 18, 2015. The company was established as a wholly owned subsidiary of Shanghai Behr Thermal System Co., Ltd. in February 2013, with an investment of CNY 170 million. The subsidiary mainly produces heaters and air conditioners for OEMs such as FAW, Volvo, Ford, and Changan Suzuki. (From news releases issued by multiple sources on June 19, 2015)

-In May 2015, MAHLE Compressor (Suzhou) Co., Ltd. was established. It mainly produced air-conditioning

Cooperation

-In March 2015, Mahle and Land Tourer signed a contract to collaborate on the production of small engines. The two companies will construct a new plant in the Shangrao Economic and Technological Development Zone, Jiangxi. Investment in this facility is expected to reach CNY 300 million. (From news releases issued by multiple sources on March 10, 2015)