SORL Auto Parts, Inc. Announces Strategic Partnership With Baotou North-Benz Heavy Duty Truck Co. Ltd.
October 25 2007 - 7:19AM
PR Newswire (US)
RUIAN CITY, China, Oct. 25 /Xinhua-PRNewswire/ -- SORL Auto Parts,
Inc. (Nasdaq: SORL; or the "Company"), a leading manufacturer and
distributor of automotive air brake valves and related components
in China, today announced that it has entered into a technology
development agreement with Baotou North- Benz Heavy Duty Truck Co.
Ltd. ('North-Benz"). With this new agreement, SORL becomes a major
long-term supplier of air brake products for North-Benz. SORL and
North-Benz started their collaboration in the first half of 2007.
After more than six months of trial installations and stringent
testing of SORL's air brake systems, the two companies signed the
technology development agreement and formally began the
comprehensive strategic partnership. The partnership will include
technology research and new product development for North-Benz's
broad range of truck products. SORL's management estimates that by
next year, SORL will supply approximately 40%-50% of the air brake
systems installed in North-Benz's heavy duty trucks. The estimated
value of the contract is approximately US$2 million in 2008.
Xiaoping Zhang, Chief Executive Officer of SORL, commented, 'We are
very excited to forge a stronger relationship with North-Benz,
another leading Chinese heavy truck maker. This key milestone
validates SORL's superior product quality, strong research and
development capability, and reliable after-sales support. Our
strategic focus on large OEMs and market penetration will continue
to benefit our revenue growth and brand name recognition.' About
Baotou North-Benz Heavy Duty Truck Co. Ltd. Based in Baotou, Inner
Mongolia Province in China, North-Benz is a Sino- foreign joint
venture with Mercedes Benz and the second largest heavy-duty truck
producer in China. North-Benz currently offers 3 series, 40 basic
models and over 400 sub models of trucks, semi-trailers, specialty
vehicles, fire trucks and construction equipment. In 2006,
North-Benz produced 8,721 and sold 7,978 heavy trucks respectively.
About SORL Auto Parts, Inc. As China's leading manufacturer and
distributor of automotive air brake valves, SORL Auto Parts, Inc.
ranks first in market share in the segment for commercial vehicles
weighing more than three tons, such as trucks and buses. The
Company distributes products both within China and internationally
under the SORL trademark. SORL ranks among the top 100 auto
component suppliers in China, with a product range that includes 40
types of air brake valves and over 800 different specifications.
The Company has three authorized international sales centers in
Australia, United Arab Emirates, and the United States, with
additional offices slated to open in other locations in the near
future. For more information, please visit http://www.sorl.cn/ .
Safe Harbor Statement This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements include, among others, those
concerning our estimated sales and expected expansion of our
production capacity as well as all assumptions, expectations,
predictions, intentions or beliefs about future events. You are
cautioned that any such forward-looking statements are not
guarantees of future performance and that a number of risks and
uncertainties could cause actual results of the Company to differ
materially from those anticipated, expressed or implied in the
forward-looking statements. The words "believe," "expect,"
"anticipate," "project," "targets," "optimistic," "intend," "aim,"
"will" or similar expressions are intended to identify
forward-looking statements. All statements other than statements of
historical fact are statements that could be deemed forward-looking
statements. Risks and uncertainties that could cause actual results
to differ materially from those anticipated include risks related
to new and existing products, product defects and any related
product recall; any projections of sales, earnings, revenue,
margins or other financial items; any statements of the plans,
strategies and objectives of management for future operations; any
statements regarding future economic conditions or performance;
uncertainties related to conducting business in China; any
statements of belief or intention; any of the factors and risks
mentioned in the "Risk Factors" section of our Annual Report on
Form 10-K for the year ended December 31, 2006 and any subsequent
SEC filings. The Company assumes no obligation and does not intend
to update any forward-looking statements, except as required by
law. For further information, please contact: Richard (Weihai) Cai
Investor Relations Manager Tel: +86-577-6581-7721 Email: Kevin
Theiss Investor Relations The Global Consulting Group Tel:
+1-646-284-9409 Email: Stacy Dimakakos Media Relations The Global
Consulting Group Tel: +1-646-284-9417 Email: DATASOURCE: SORL Auto
Parts, Inc. CONTACT: Richard (Weihai) Cai, Investor Relations
Manager of SORL, +86- 577-6581-7721, or ; or Kevin Theiss, Investor
Relations, +1-646-284-9409, or , or Stacy Dimakakos, Media
Relations, +1-646-284-9417, or , both of The Global Consulting
Group, for SORL Web Site: http://www.sorl.cn/
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