MAHLE Group China Business Report FY ended Dec. 2015

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

-Bosch Mahle Turbo Systems (BMTS), a joint venture between Bosch and Mahle, announced that it has established Bosch Mahle Turbo Systems (Shanghai) Co., Ltd., a wholly owned production subsidiary in Shanghai, China. The subsidiary is constructing a factory on a 5,000-square-meter-plot within the premises of Mahle’s existing Shanghai facility. The new plant will be operational in the first quarter of 2014, and will initially produce turbochargers and gasoline engines for the Chinese market. Approximately 100 employees from BMTS Austria and BMTS Germany will be transferred to the Shanghai Plant. The plant will be able to produce 1 million turbochargers per year. (From a press release on February 14, 2014)

-In August 2014, Shanghai Behr Thermal Systems Co., Ltd. (SBTS), a joint venture between MAHLE Behr GmbH & Co. KG and Shanghai Sanden Behr Automotive Air Conditioning Co., Ltd., opened another plant in Shenyang, China. It is the fifth production location of the Thermal Management business unit in China and is specialized in the manufacture of products for vehicle air conditioning and engine cooling.

Come into Operation

-MAHLE Group China announced that Mahle Filter Systems (Hubei) Co., Ltd., its new production facility in Wuhan, began operating in August 2014. Investment in this company totaled EUR 75 million. The plant will produce automotive filter systems and engine components such as air filters, intake manifolds, engine cylinder head covers, and oil coolers for Nissan, Dongfeng Peugeot-Citroen, General Motors, Honda, Volvo, Suzuki, Renault and other companies. Its annual production capacity is expected to reach 2 million units and sales are forecast to total CNY 1 billion per year. (From news releases issued by multiple sources on August 13, 2014)

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)

Award

-MAHLE Guangzhou Filter Systems Co., Ltd. received "Supplier Quality Award-China Regional Quality Award". (From MAHLE Group's 2015 annual report)

R&D Facility

-Mahle announced that it completed the expansion of its research and development center located in the suburbs of Shanghai. Approximately 15,000 square meters of production space and 3,200 square meters of office space have been added to the facility. The expansion project includes Bosch Mahle Turbo Systems' factory that will produce tools for filters and engine auxiliary components. (From news releases issued by multiple sources on December 2, 2014)