CITIC Dicastal Co., Ltd. FY2010-2011

Business Highlights

Financial overview

- At the end of 2011, the Company's annual production capacity reached 30 million. In 2011, the Company sold more than 25 million aluminum alloy wheels, reached 10 billion yuan.

- In FY 2010, the Company sold 20.68 million aluminum alloy wheels, reached an increase of 56% year-on-year. The net profit is 120 million yuan, increased 24.6%.(From Citic's 2010 annual report)

Starts production
- Chongqing Dicastal Jieli wheel manufacturing Co., Ltd. started to produce aluminum alloy wheels. Chongqing Dicastal Jieli produces high-end aluminum alloy wheels which are mainly for exportation. The initial production capacity is 200×104 unit/a, with a plan to reach 1000 X 104 unit/a in 2016.(From a press release, October 21, 2011) 


- Based on an agreement it made in July 2011, Citic Dicastal Wheel Manufacturing Co., Ltd. has acquired KSM Castings of Germany, and held a ceremony in HildesheimGermany to celebrate the completion of the share transaction. The acquisition marks the largest in scale in Germany conducted by a Chinese company. KSM is one of the leading suppliers of chassis and powertrain products in Europe, operating six plants including those in Hildesheim and WernigerodeGermany, as well as Hradek in the Czech Republic. In addition to dealing with Mercedes-Benz, Audi, Volkswagen and other automakers based in Europe, the company also supplies its products to Chinese companies, including FAW-VW and FAW Toyota. (From a press release, December 6, 2011)


- Citic Dicastal Wheel Manufacturing Co., Ltd. has acquired KSM Castings GmbH, an auto parts supplier owned by a German-based private equity firm, Cognetas. This project marks the first acquisition of overseas assets by Citic Dicastal and the largest investment in the German automotive industry by a Chinese company. According to KSM, the deal is worth approximately 300 million euros, although a concrete figure has not been revealed. KSM, which employs 2,700 people, supplies components used in automotive engines and drivetrain systems to Volkswagen, Daimler and other automakers. Its sales for the year ended March 2011 reached 400 million euros. Citic Dicastal says the management right of KSM will continue to be held by KSM’s current management team. (From news releases issued by multiple sources on July 14, 2011)

- On March 11, 2011, the Company was awarded the Best Supplier Award for 2010 from General Motors of the U.S. The company is the world’s only aluminum wheel supplier which received this award from General Motors. The Company has served as one of General Motors’ global suppliers since 2003. (From a press release, April 13, 2011)


R&D Structure

- The Company conducts development activities at the Technical Center it established in February 1993.
- Citic Dicastal has established overseas R & D centers in Europe, North America and technical center in Japan. With the strong R & D capability, Citic Dicastal has become the first wheel manufacturer which can provide synchronous development together with global auto makers. Projects of synchronous development have extended to year 2015.

Strategic alliance with Dongfeng

-The Company and Dongfeng Research Center formed a strategic alliance on May 15. (From a press release, May 15, 2010)

Investment Activities

Investment activity

- Chongqing Dicastal Jieli wheel manufacturing Co., Ltd., a subsidiary of the Company, will be established at Chongqing Jiulongpo Area Xipeng Industrial Park. The construction project will be carried out in two phases, with the company investing 1,000 million yuan in total and 300 million yuan in Phase I alone. After Phase I is completed, the plant will have the capacity to produce 3 million Al-Mg-Si alloy lightweight  car wheels per year. Phase I is scheduled to be completed in August, 2011.(From a press release on September 27, 2010)