Beijing Hainachuan Automotive Parts Co., Ltd. Business Report FY2010

Business Highlights


- The Beijing-based company has launched a plant construction project in Zhuzhou, Hunan Province in a move to expand its presence into southern China. In addition to supplying its products to the Beijing Automotive Group, it has been increasing business with other Chinese automakers as well.
- In recent years, the Company has been placing emphasis on module business.

Market expansion

Zhuzhou Plant
- On January 24, 2010, the Company signed partnership agreements with Hubei Henglong Group, Shenzhen Hangsheng Electronics, Nanjing Xiezhong Air-conditioning Group, Shandong Xinghua Banhuang Co., Ltd., and the Zhuzhou High Tech Industry Development Zone based on its plan to establish a joint venture to manufacture steering systems, in-vehicle electronic components, climate control products, and air suspension products at its new Zhuzhou facility.

Beijing Plant
On February 18, 2011, the Company signed the following five partnership projects:
1) establishing Beijing Hainachuan Yanfeng Automotive Module Systems Co., Ltd. through a joint investment with Yanfeng Visteon Automotive Trim Systems Co., Ltd.;
2) entering a technical collaboration in module business with CH Auto Technology Corporation Ltd.;
3) reorganizing and increasing the capital of Beijing Beiqi Feichi Auto Electrical Technology Co., Ltd. jointly with Beijing Hainachuan Automotive Parts. The purpose of the collaboration is to enter the generator and starter markets for passenger and commercial vehicles;
4) expanding business at Beijing Gear Works jointly with Beijing Automobile Works Co., Ltd.; and 5) conducting joint development of automotive noise insulating products with Chongqing Changpeng Industry (Group) Co., Ltd. (From a press release, March 2, 2011)

Partnership with non-Beijing Automotive Group companies

Baotou North-Benz Heavy-Duty Truck Co., Ltd.
- On June 1, the Company and Baotou North-Benz Heavy-Duty Truck Co., Ltd. signed a basic agreement of understanding that will set the framework for them to form a strategic partnership. It is expected that the Company will collaborate in the area of electronics control systems, and the two companies will establish an electronics development center. (From a press release, July 8, 2010)

- On March 14, 2011, the Company and JAC held a meeting to discuss local procurement of components for light-duty trucks to supply to JAC Qingzhou Plant. The two companies have been collaborating in areas including technology since December 2010. (From a press release, March 17, 2011)

Module business

- On March 13, 2010, the Company established Beijing Hainachuan Automotive Parts Co., Ltd. Automotive Module Systems Branch to engage in modularizaion of automotive components. The new company will develop and sell front chassis modules, rear suspension modules, front-end cooling modules, wheel modules, front bumper modules, rear bumper modules, and exhaust system modules.

Investment Activities

New plant

New facility in Zhuzhou, Hunan to support Beijing Automobile
- On September 18, 2010, the Company held a ground breaking ceremony for its new auto parts production facility it is going to establish at the Liyu Industrial Park in Tianyuan district, Zhuzhou, Hunan Province. The company decided to construct the plant because Beijing Automobile moved into Hunan and the surrounding areas. The plant will be built on 200,000 square meters of land. The total investment in this project is expected to reach 550 million yuan. Construction will be carried out in two phases, with operations scheduled to begin after the first phase is finished by the end of July 2011. In addition to producing and processing automotive components, the plant will handle modularization and distribution of products. It will supply its products to Beijing Automobile's passenger vehicles division in Zhuzhou as well as to other automakers operating in the region. (From a press release, September 20, 2010)