Fawer Automotive Parts Co., Ltd. - FY2006

Business Highlights

<Joint ventures>

Joint venture with TRW

- In March 2006, TRW Fawer Commercial Vehicle Steering (Changchun) Co., Ltd., a joint venture with TRW, built a new plant to produce steering products. The plant supplies steering products to domestic and overseas commercial vehicle makers, especially to medium- and heavy-duty truck manufacturers. The plant also exports machined components to the US and Mexico. The new facility, which is able to operate 14 production lines, has an annual capacity of 250,000 units.;

-In April, 2006, TRW FAWER Automobile Safety System (Changchun) Co., Ltd. announced that it will supply steering wheels, driver-side airbag modules, and side-impact airbag modules for the new Audi A4 built at FAW-VW. 

- In Dec., 2006, TRW FAWER Automobile Safety Systems (Changchun) Co., Ltd. established a new plant in Beijing to manufacture chassis modules for Beijing DaimlerChrysler. Located adjacent to the facility of Beijing DaimlerChrysler, this new Beijing facility will supply rear axles, brake assemblies, front struts, and knuckle assemblies to the automaker's production lines manufacturing the Chrysler 300C and a new sedan, which will be locally assembled in China, based on a just-in-time production system. 

Joint venture with Y-Tec Corporation

- In June, 2006, Fawer Y-Tec Chassis Parts Co., Ltd. launched commercial operations. Established in October, 2005 with a total investment of 237 million yuan, the company is jointly owned by Fawer Automotive Parts Co., Ltd. (owning 40%), Y-Tec Corporation (owning 40%), and Sumitomo Corporation (owning 20%). The company manufactures chassis components for the FAW Mazda 6 series passenger vehicles, using manufacturing lines and technology it introduced from Y-Tec, namely hydraulic molding lines, welding lines, painting lines, and manufacturing technology for front/rear sub frames and lower arms. Fawer Y-Tec Chassis Parts plans to expand its annual production capacity to 70,000 sets by 2008.