Fawer Automotive Parts Limited Company Business Report FY2010

Business Highlights


-FAWER Visteon Climate Control System (Changchun) Co., Ltd (FVCC) has moved the Changchun Automotive Development Zone and expanded its manufacturing operation in Changchun, China. The new plant will produce heating, ventilation and air conditioning systems (HVAC) and mechanically assembled aluminum radiators, in addition to brazed aluminum radiators that FVCC currently produces. In 2009, FVCC established a technical collaboration with Japan Climate Systems (JCS), another Visteon joint venture, leading to the introduction of the HVAC product line. In addition, FVCC localized the design of radiators. The Changchun facility has the capacity to produce 1.2 million brazed radiators, 250,000 mechanical radiators and 240,000 HVAC systems annually. FVCC serves a range of automakers such as FAW-Volkswagen, FAW Car, FAW Jiefang, FAW Xiali, FAW Haima, Shanghai Volkswagen, Chang'an Ford, Chery, Geely, and Great Wall. (From a press release on June 22, 2010)

Preparing to join the stock

-On September 30, the Comapny and Guangdong Sunrise Holdings Co., Ltd. signed an agreement to reorganize and merge their operations. Based on the agreement, Guangdong Sunrise will absorb the Company through a stock swap after issuing new shares. After the merger is completed, the Comapny will transfer all its operations, assets and liabilities to Guangdong Sunrise, losing its corporate status. This project, however, is subject to governmental approvals, including those from the State-owned Assets Supervision and Administration Commission and the China Securities Regulatory Commission. Currently, Ningbo Huaxiang Electronic Co., Ltd. owns 20 percent or 200,000,000 shares of stock in the Company. However, it has yet to be decided how many shares it will own, and what the value of these shares will be, after the merger.(From a press release, September 30, 2010)

-The Company is working on reorganizing its business with Guangdong Sunrise Holdings Co., Ltd. On October 28, Guangdong Sunrise said the two companies' plan was approved by the Shenzhen Intermediate People's Court, which will accelerate Fawer Automotive Parts' joining the stock market. (From a press release, November 9, 2010)


Export business

-Fawer Drive Shaft Branch Company, a branch company of the Company, which exported 1 million yuan worth of drive shafts to KAMAZ of Russia in 2010, is aiming to double the amount to 2 million yuan in 2011. (From a press release, March 1, 2011)


R&D Facilities

-The Company owns Fawer Automotive Parts Co., Ltd. Technology Center, an R&D center.

Investment Activities

New Production Facility Established

-Tianjin Fawer Denso Air-Conditioner, which is a joint venture between the Denso Group and the Company  broke ground on its new plant site at the Changchun Xixin Economic & Technological Development Zone, Jilin Province on May 18, 2011. Investment in this project is expected to reach 177 million yuan. The Changchun Plant, which will have a building area of 16,000 square meters, is scheduled to be completed in early 2012. The joint venture plans to ensure the capacity to manufacture 560,000 automotive air conditioners by 2015, aiming to generate 1.2 billion yuan in annual sales. Addition of the new production base will improve the delivery efficiency in supplying its products to Sichuan FAW Toyota Co., Ltd. Changchun Fengyue Company, FAW-VW and FAW Car. (From a press release, May 20, 2011)


-On September 27, the Company held a ceremony to jointly celebrate the completion of the Fawer Industrial Park and the plant of Fawer Visteon Climate Control System (Changchun) at the Changchun Development Zone for the Industry. The total investment in the Fawer Industrial Park has reached 1 billion yuan. (From a press release, September 28, 2010)