Dongfeng Motor Parts And Components Group Co., Ltd.FY2011

Business Highlights

New plant

- The Company  and the local government of the Caidian District, Wuhan City, Hubei Province have signed a contract based on which the Company will establish a new industrial park at the district. In addition to the Wuhan industrial park, the company is planning to create two other industrial parks in both Shiyan and Yangyang. The expansions are intended to increase the company’s yearly sales to over 13 billion yuan by 2015. The Wuhan facility will focus on passenger vehicle parts, automotive electronics products, and components for new energy vehicles, aiming to increase its annual sales to 2 billion yuan in two years. (From news releases issued by multiple sources on May 9, 2011) 

Shanghai Fleetguard Filter Co., Ltd., a joint venture company of the Company, will establish a new plant to produce filters at the Wuhan Dunkou Economic and Development Zone. Products will be supplied to automakers such asDongfeng Peugeot Citroen, Dongfeng Honda and Dongfeng Nissan. (From news releases issued by multiple sources on March 26, 2011)

- Dongfeng Investment Casting Co., Ltd. has held a groundbreaking ceremony for its new plant at the Economic and Technological Development Zone in Chaohu City, Anhui Province. The company’s new strategic production base in Eastern China will start operations after the first phase of the construction project is completed in the fourth quarter (October-December) of 2012. Sales at the new plant are expected to reach 400 million yuan a year when the whole facilities are completed. (From a press release, November 14, 2011)

- Dongfeng Automotive Wheel Co., Ltd., a subsidiary of the Company, completed its assembly line and coating line in Chongqing Qingling Motors and started to supply 9 products; The wheel Company started to supply wheels for BYD F3, Dongfeng  Peugeot Citroen TX3 and W23 in bulk. As for new orders, The Wheel Company’s market share in Dongfeng Suizhou Special Vehicles raised to 100%, with sales increased 42%; Its market share in Jinggong Chongqing Automobile Co., Ltd. reached 60%; The supply to BYD F3 overcame 40%; It was the exclusive supplier of Shanghai GM Wuling,with demand increased 71%. From January to November in 2011, the Wheel Company sold 6.92 million steel wheels. (From a press release on December 26, 2011)

Strategic alliance
- In 2010,Dongfeng Peugeot Citroen Automobile Co.,Ltd. purchased 6billion yuan auto parts from the Company, accounting for more than 27% of its total procurement. In 2011, Dongfeng Peugeot Citroen Automobile Co.,Ltd.'s total procurement from the Company is expected to reach 7 billion yuan. (From a press release June 5, 2011)


Academic-industrial alliance
- The Company and Hubei University of Automotive Technology signed an academic-industrial agreement, in order to improve its R&D ability.(From a press release May 12, 2011)

Investment Activities

Investment activities

- The Company will build a new industrial district in Shiyan, Zhangwan District. The company is investing more than 2.5 billion yuan to construct a suspension spring plant, a fastener plant, and a wheel plant. Within three to five years, the industrial park is expected to become a production and supply hub for components used in medium- and heavy-duty trucks and buses. When the facilities are completed, the industrial output is projected to reach 10 billion yuan. On January 29, 2011, the company held a ground breaking ceremony at the 9.7-hectare plant site of the suspension spring facility, on which it is spending 139 million yuan. The plant building is scheduled to be completed in October 2011, after which equipment will be installed and trial production will begin. This facility will manufacture products worth over 500 million yuan a year, focusing mainly on high-end products. (From news releases issued by multiple sources on January 30, 2011)