Fawer Automotive Parts Limited Company - FY2008
Business Highlights
<Reorganizing the Company's business structure>
Ningbo Huaxiang Electronic Co., Ltd. becoming the largest shareholder
- In January 2008, Fawer Automotive Parts Limited Company, which was formed through reorganizing Fawer Automotive Parts Co., Ltd., held its opening ceremony in Changchun. The reorganization was carried out in line with a national project to modernize state-owned companies, which included Fawer Automotive Parts Co. ,Ltd., and in line with an initiative to reorganize the FAW Group's business structure. Based on this recent move, Ningbo Huaxiang Electronic Co., Ltd. invested in the company, and as a result, Fawer Automotive Parts was changed from a state-owned company into a holding company jointly owned by the FAW Group, the former Fawer Automotive, and Ningbo Huaxiang Electronic Co., Ltd. The new entity is capitalized at 1 billion yuan, of which 49 percent will be provided by Ningbo Huaxiang Electronic Co., Ltd. and 16 percent by Fawer Automotive Parts, all in cash. The FAW Group will contribute the remaining 35 percent in the form of net assets.
Ningbo Huaxiang Electronic, which makes interior trims and other auto parts through its subsidiaries, supplies its products to major automakers such as Shanghai VW, Shanghai GM, FAW-VW, and Tianjin FAW Toyota Motor Co.,Ltd. Ningbo Huaxiang Electronic has more than 10 subsidaries.
Over the past several years, the company has been switching from supplying single-unit products to supplying chassis parts, engine parts, and air conditioning systems.
Ningbo Huaxiang Electronic Co., Ltd. becoming the largest shareholder
- In January 2008, Fawer Automotive Parts Limited Company, which was formed through reorganizing Fawer Automotive Parts Co., Ltd., held its opening ceremony in Changchun. The reorganization was carried out in line with a national project to modernize state-owned companies, which included Fawer Automotive Parts Co. ,Ltd., and in line with an initiative to reorganize the FAW Group's business structure. Based on this recent move, Ningbo Huaxiang Electronic Co., Ltd. invested in the company, and as a result, Fawer Automotive Parts was changed from a state-owned company into a holding company jointly owned by the FAW Group, the former Fawer Automotive, and Ningbo Huaxiang Electronic Co., Ltd. The new entity is capitalized at 1 billion yuan, of which 49 percent will be provided by Ningbo Huaxiang Electronic Co., Ltd. and 16 percent by Fawer Automotive Parts, all in cash. The FAW Group will contribute the remaining 35 percent in the form of net assets.
Ningbo Huaxiang Electronic, which makes interior trims and other auto parts through its subsidiaries, supplies its products to major automakers such as Shanghai VW, Shanghai GM, FAW-VW, and Tianjin FAW Toyota Motor Co.,Ltd. Ningbo Huaxiang Electronic has more than 10 subsidaries.
Over the past several years, the company has been switching from supplying single-unit products to supplying chassis parts, engine parts, and air conditioning systems.
Investment Activities
<Establishing Fawer Industrial Park>
- In June 2008, the Company held a ground-breaking ceremony at Fawer Industrial Park in the Changchun Automotive Industry Development Zone. The Company is investing 380 million yuan on the first phase of its construction project at the Industrial Park, which is 300,000 square meters in size. After the new industrial park is finished, Fawer will transfer the operations of its wholly owned subsidiaries and three of its joint-venture companies operating in Changhcun City. Fawer expects to generate 1.9 billion yuan in sales per year from this new, integrated facility. (From a press release, July 4, 2008)
- In June 2008, the Company held a ground-breaking ceremony at Fawer Industrial Park in the Changchun Automotive Industry Development Zone. The Company is investing 380 million yuan on the first phase of its construction project at the Industrial Park, which is 300,000 square meters in size. After the new industrial park is finished, Fawer will transfer the operations of its wholly owned subsidiaries and three of its joint-venture companies operating in Changhcun City. Fawer expects to generate 1.9 billion yuan in sales per year from this new, integrated facility. (From a press release, July 4, 2008)