Anhui Anqing Huanxin Group Co., Ltd. FY2007

Business Highlights

Joint-venture business
In April 2007, Anqing Scherdel Automobile Parts Co., Ltd., which is a joint-venture company between the Company and the Scherdel Group of Germany since October 2006, launched construction work at its plant. The joint venture is capitalized at 3 million euros, 40 percent of which was invested by Huanxin, and the remaining 60 percent provided by Scherdel. Total investment in the company has reached 6 million euro. Anqing Scherdel will manufacture piston ring springs with an annual production capacity of 34 million units. Sales at the new company are expected to reach 40 million yuan.

Investment Activities

Major investment projects
Project Joint-project partner Details Status
Constructing a new plant at Anqing Scherdel Automobile Parts Co., Ltd. Scherdel - Building a new plant to manufacture piston ring springs
- Annual production capacity: 34 million units
Under construction
Expanding production facilities at Anqing TP Powder Metallurgy Co., Ltd. Teikoku Piston Ring Co., Ltd. - Expanding facilities to make sintered parts such as intake and exhaust valve seats
- Increasing annual production capacity of valve seats by 30 percent, for a total of 4 million units; and doubling annual production capacity of valve guides, for a total of 2 million units.