Dongfeng Motor Parts And Components Group Co., Ltd. Business Report FY ended Dec. 2012

Business Highlights

Financial Overview
-The Company’s net sales increased 2.19% in 2011 to 8,492 million yuan. (From a press release, Jan.17, 2012) 

-The Company generated sales of 4,449 million yuan in the first half of 2010. This figure is almost double the amount reported for the same period in 2009. In addition, the Company announced that sales from the first half of 2010 had reached 80.93 percent of its full-year sales target. (From a press release, July 21, 2010) 

Subsidiary Business Outlook

-Shanghai Fleetguard Filter Co., Ltd. announced its business objectives of generating 900 million yuan in net sales and achieving 198 million yuan in operating profit for FY 2013. (From a press release on March 20, 2013)

-Dongfeng Visteon Automotive Trim Systems Co., Ltd., which is a joint venture established by Dongfeng Electronic Technology Co., Ltd., Yanfeng Visteon Automotive Trim Systems, and Visteon in 2003, has developed a series of new products in the first half of 2012. These products have already been delivered to its customers, winning favorable remarks. It supplied 8 new products to Dongfeng Peugeot-Citroen Automobile,  including two items destined for exports; its proprietary door trims for the Dongfeng Honda 2CN; fenders for the GAC Mitsubishi 3X45; door trims for the Dongfeng Nissan Teana; instrument panel modules for the Venucia D50; and instrument panels for the Donfeng Motor S30 and A60. (From a press release, September 26, 2012)

New plant
-Dongfeng Motor Parts and Components’ new industrial park project in Shiyan New Industrial Area has reached the stage of interior finishing and equipment installation after the plant buildings were completed. Equipment installation will soon begin at the power assembly plant of Dongfeng Commercial Vehicle, where its external wall and roof were already completed and interior finishing is on the final phase. Floor and wall construction is now underway at a 20,000-square-meter suspension spring factory. Production equipment is being installed at the welding factory, which was completed in June 2012. (From a press release, October 24, 2012)

-Dongfeng Motor Suspension Spring Co., Ltd., a subsidiary of the Company, launched the passenger vehicle suspension business on December 28, 2011 by starting operation on its new stabilizer production line with an annual production capacity of 300,000 units. For the company, which has specialized in the commercial vehicle sector so far, the expansion marks a significant milestone as its penetration into the passenger vehicle market. Over the past year, the company has produced prototypes of stabilizers for the S30 and the H30, Donfeng’s own brand vehicles, and established small lot production systems. The production capacity of the new plant can be increased up to 1.5 million units a year. (From a press release, January 17, 2012)

-On December 30, 2011, Shanghai Fleetguard Filter Co., Ltd., a subsidiary of the Company, held a groundbreaking ceremony for its new plant in Wuhan. The new facility will have the capacity to produce 20 million filters a year. The first phase of the construction project, which includes construction of a plant and a filter production line, is scheduled to be completed by December 2012. Its operations are slated to begin in April 2013. (From a press release, January 17, 2012)

Strategic alliance

-In March 2012, the Company and Zhengzhou Nissan held high level discussions in Wuhan about establishing a strategic alliance. The two companies, which have developed collaborative business relationships in the past, came to agreement on further strengthening their ties. The Company’s 11 subsidiaries and its affiliates have formed collaborative alliances with Zhengzhou Nissan in all vehicle categories except SUVs. Business volumes between the two companies reached 132.25 million yen in 2011. (From a press release, March 19, 2012) 


-In November 2012, Dongfeng Behr Thermal Systems Co., Ltd. received the Excellent Supplier Award from Dongfeng Commercial Vehicle during Dongfeng Commercial Vehicle’s annual supplier meeting held in Chengdu. This was the 3rd consecutive year that Dongfeng Behr Thermal Systems had won the award. (From a press release on November 30, 2012)


R&D Activities

-In FY 2012, the Company developed 167 new products. The ratio of new product sales to total sales in 2012 was 16.83%. Cost reductions due to new technology totaled 7.67 million yuan, 6.14 million of which was contributed from material technology while 1.53 million was derived from manufacturing technology. (From a press release on March 11, 2013)

Academic-industrial alliance

-The Company and Hubei University of Automotive Technology signed an academic-industrial agreement to improve the R&D capabilities of both parties. (From a press release May 12, 2011)

Investment Activities

Investment activities

-The Company is building a new industrial district in Shiyan, Zhangwan District. The Company has invested more than 2.5 billion yuan to construct a suspension spring plant, a fastener plant, and a wheel plant. In 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. Upon completion of all the facilities, the annual output of the industrial park is projected to reach 10 billion yuan. In January 2011, the Company held a groundbreaking ceremony at the 9.7-hectare plant site of the suspension spring facility. The Company invested 139 million yuan in the plant. Construction on the building for the suspension spring plant was scheduled to complete in October 2011, upon which equipment would be installed and trial production would begin. The facility is expected to manufacture products worth over 500 million yuan a year while focusing primarily on high-end products. (From news releases issued by multiple sources on January 30, 2011)

Project Investment (in million yuan) Status
Acquisition and installation of new equipment for Dongfeng Motor Wheel Co., Ltd. 220.0 Under construction