WUHAN, China, Dec. 27, 2018 /PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced it has entered into a joint venture agreement with Hyoseong Electric Co. Ltd. ("Hyoseong Electric") to design, manufacture and sell electric motors for automotive electric power steering systems ("EPS").
The joint venture, Hyoseong (Wuhan) Motion Mechatronics System Co. Ltd. ("HMMS"), is 51% owned by CAAS and 49% by Hyoseong Electric. A new production facility is being planned near CAAS's headquarters in Wuhan with an expected annual capacity of 4.5 million units upon completion. Total investment in HMMS will be RMB 550 million with RMB 198 million for the first phase of the production facility.
Founded in Busan, South Korea in 1973, Hyoseong Electric develops, manufactures, and sells direct current (DC) electric motors for automotive EPS, anti-lock braking systems (ABS), electric parking brakes (EPB) and HVAC blowers. Hyoseong Electric has become the world's third largest producer of HVAC blower electric motors and the third largest electric motor supplier to automotive EPS products in Asia.
Mr. Qizhou Wu, Chief Executive Officer of CAAS, commented, "With this joint venture, we will not only significantly increase in-sourcing capability, but also gain greater control over the technology, production and quality of motors for our EPS products, which are critical products for our future. Knowing the future of autonomous vehicles requires stronger steering systems to coordinate on-road navigation and vehicle maneuvering, we are proactively strengthening our products to prepare for the paradigm shift in the foreseeable future. In addition, we look forward to broadening our product offerings and increasing our market shares."
About China Automotive Systems, Inc.
Based in Hubei Province, the People's Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through eight Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers four separate series of power steering with an annual production capacity of over 6 million sets of steering gears, columns and steering hoses. Its customer base is comprised of leading auto manufacturers, such as China FAW Group, Corp., Dongfeng Auto Group Co., Ltd., BYD Auto Company Limited, Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd. in China, and Chrysler Group LLC in North America. For more information, please visit: https://www.caasauto.com.
This press release contains statements that are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. These forward-looking statements include statements regarding the qualitative and quantitative effects of the accounting errors, the periods involved, the nature of the Company's review and any anticipated conclusions of the Company or its management and other statements that are not historical facts. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. As a result, the Company's actual results could differ materially from those contained in these forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's Form 10-K annual report filed with the Securities and Exchange Commission on March 29, 2018, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.
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Chief Financial Officer
China Automotive Systems, Inc.
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