Beijing Hainachuan Automotive Parts Co., Ltd. Business Report FY ended Dec. 2016

Recent trends

-Beijing Hainachuan Automotive Parts Co., Ltd. has signed a framework agreement with Korea-based Seoyon E-Hwa on further reorganizing their interior trim business. Forming a closer partnership, the two companies aim to increase their presence in China’s interior trim market. (From news releases issued by multiple sources on September 6, 2016)

New Companies

-The Company has signed a memorandum of understanding (MOU) with Johnson Controls Inc., to set up automotive battery sales and manufacturing joint ventures in China. Under the MOU, Johnson Controls and BHAP will partner to offer a range of batteries to automakers and service networks under BAIC Group. These batteries can power conventional vehicles and those for Start-Stop systems (Absorbent Glass Mat and Enhanced Flooded batteries). (From a press release on September 14, 2015)

-The Company and Hwashin Co., Ltd. have established a joint-venture company in Cangzhou, China. The new company is owned 26 percent by Hwashin; 25 percent by Beijing Hwashin Automobile Parts Co., Ltd.; and 49 percent by Beijing Hainachuan. It will supply auto parts to the Cangzhou Plant of Hyundai Motor. (From a press release on June 17, 2015)

-The new Shanghai Plant of Inalfa Roof Systems Group B.V., a subsidiary of The Company, began operations in Jiading, Shanghai. The new plant has a floor area of 12,000 square meters. It has the capacity to produce 800,000 sets of sunroofs per year for customers including Shanghai GM, Ford, and Volvo. (From news releases issued by multiple sources on May 11, 2015)

Acquisition

-Langfang LEONI Wiring Systems Co., Ltd., which is a joint venture between The Company and LEONI Electrical Systems (Shanghai) Co. Ltd., has held an opening ceremony in Sanhe, Langfang, Hebei. This facility was originally formed in May 2013, fully invested by LEONI Electrical Systems (Shanghai). It supplies wire harnesses mainly for Beijing Benz. In December 2015, Beijing Hainachuan acquired 50% of the company's shares, converting it into a joint venture. (From news releases issued by multiple sources on March 1, 2016)

-Leoni AG announced that it has agreed a joint venture with The Company. It provides that Leoni will sell 50 percent of the shares in its wiring systems plant in Langfang (Hebei Province) to BHAP. This plant has to date exclusively been making cable harnesses for the car ranges of Beijing Benz Automotive Co Ltd (BBAC), the joint venture between Daimler AG and its Chinese partner BAIC. (From a press release on September 18, 2015)

Contracts

-Beijing Beiqi Lear Automotive System Co., Ltd., a subsidiary of The Company, announced that it has passed Mercedes-Benz’s test for mass production, and will supply seats for the automaker's new model (V213: development code). This seat is the world’s first to be developed simultaneously with the vehicle and engineered in-house in China.The high-grade seat system features independent rear seats, 6-way adjustable seats, ventilation fans, heaters, and a massage function. (From news releases issued by multiple sources on July 1, 2016)

-Beijing Beiqi Mould & Plastic Technology Co., Ltd., a subsidiary of The Company, announced that it has received a contract to supply bumpers for Volvo K426 (development code). The company will produce bumpers for 100,000 units of this new model per year, which will be mass produced in Chengdu, starting in November 2017. (From news releases issued by multiple sources on June 30, 2016)

Passed audits

-The Company announced that welded components made by its Beijing Branch have passed Beijing Benz' test, and the products will be supplied for the automaker's new model X156 (development code). (From news releases issued by multiple sources on March 1, 2016)

-The Company announced that its brake pedals produced at the Beijing branch's chassis plant passed the Daimler Process Audit on November 4, 2015. (From press releases issued by multiple sources on November 30, 2015)

-The Company announced that its Beijing Branch's Yizhuang Plant, which performs welding and assembly operations, has passed the VDA6.3 process audit by Daimler. This achievement makes the company a potential supplier to the German automaker. (From news releases issued by multiple sources on June 18, 2015)

-The Company announced that the wheel plant of its Beijing Branch has passed both the VDA6.3 process audit and the Layered Process Audit (LPA) performed by Daimler and Bejing Benz. These achievements gave the company the qualification to supply X156 (GLA) wheels to Beijing Benz. (From news releases issued by multiple sources on February 26, 2015)

-The Company announced that its chassis plant has received technical guidance from Daimler, and is expecting to supply steering columns for the automakers' new models. These vehicles include the new Mercedes-Benz C-class (development code: V205), the new Mercedes-Benz GLA (development code: X156), and the next generation of the Mercedes-Benz GLK (development code: X253). (From a press release on January 22, 2015)

Awards

-Yanfeng Visteon (Beijing) Automotive Trim Systems Co., Ltd., a subsidiary of the Company, announced that it has received the Excellent Suppler Award from Beiqi Foton. (From news releases issued by multiple sources on February 2, 2015)

R&D Centers

-Inalfa Roof Systems Group B.V.,the Company's subsidiary, has five R&D centers worldwide.

  • Venray, Netherlands
  • Auburn Hills, Michigan, USA
  • Mado, Korea
  • Shin-Yokohama, Japan
  • Shanghai, China

Investment in China

-The Company announced that BAIC Dymos Automotive System Co., Ltd., which is its joint venture with Hyundai Dymos, held a groundbreaking ceremony for its automotive seat plant on August 7, 2015. This project, which started in March 2015, is scheduled to be completed by July 2016. The plant will be capable of producing seats for 300,000 vehicles per year, and will supply its products to Hyundai Motor's Cangzhou Plant. (From a press release on August 8, 2015)

-The Company announced that it will establish an automotive industrial park in Chongqing China in order to expand support for the Beijing Automotive Group’s business in southwest China. The total investment in this project is expected to reach CNY 2,100 million. The park will cover 454,000 square meters of land, and will house nine subsidiaries of Beijing Hainachuan when the first phase of the construction project is completed. The nine companies include Beijing Beiqi Mould & Plastic Technology Co., Ltd., Tenneco (Beijing) Exhaust System Co., Ltd., Inalfa Roof Systems Group B.V., and Beijing Hanil Automotive Trim Co., Ltd. (From news releases issued by multiple sources on July 14, 2015)