Anhui Anqing Huanxin Group Co., Ltd. FY2004-FY2006

Business Highlights

New joint venture companies 
- In September, 2006, Teikoku Piston Ring Co., Ltd. (TPR); DDX of China; and the Company jointly established Dailian Boxin Special Steel Products Co., Ltd. in the Dalian Economic Development Zone, Dalian, Liaoning Province to manufacture wire rods for dies and shafting for motors. The total investment in the new company reached US$10 million. The joint venture corporation is capitalized at US$6 million, with 42.0 percent owned by DDX, 34.8 percent by Teikoku Piston Ring, and the remaining 23.2 percent by the Company. 

- The Company and Scherdel Group of Germany jointly established Anqing Scherdel Automobile Parts Co., Ltd. to manufacture piston ring springs in Anqing City, Anhui Province. The joint venture company is capitalized at three million euros, 40 percent of which was invested by the Company, and the remaining 60 percent provided by Scherdel. Total investment in the company reached 6 million euro, and plant construction at the new company started in April, 2007. 

Investment Activities

Physical vapor deposition (PVD) technology
- In June, 2004, Anqing TP Goetze Piston Ring Co., Ltd. started operations of the new manufacturing line using physical vapor deposition (PVD) technology introduced from Teikoku Piston Ring Co., Ltd. (TP). This has become the first and the sole PVD line for piston rings in China and will manufacture products for new engines used in Tianjin Toyota and Guangzhou Honda's vehicles. Teikoku Piston Ring has obtained a patent for the PVD technology.

New plant
- In January 2005, Anqing TP Goetze Piston Ring Co., Ltd. started commercial production of piston rings at its new facility in the Anqing Economic and Technological Development Zone. Construction of the new plant started in June, 2004, with an additional investment of 25 million dollars by three companies: Teikoku Piston Ring Co., Ltd. (TPR); Federal-Mogul Corporation, and the Anqing Huanxin Group.