SORL Auto Parts Acquires Additional Territory to Increase Production
SORL Auto Parts, Inc., one of China’s leading automotive producers and distributors of air brake valves and other Aftermarket Performance Parts, announced through its subsidiary, Ruili Group Ruian Auto Parts Co., Ltd, that it has acquired the property it has been leasing, as well as an extension of said land. This development, according to SORL management, is meant to enhance its seemingly deficient production output.
Existing setup shows that SORL is actually leasing Ruili property and occupying only about 50 percent of the production facility. In such a purchase, the acquired expansion is then expected to readily answer the company’s estimated growth demands for the subsequent two to three years.
Included in the announcement are the particulars of such purchase. According to the company, it has purchased land rights, an office building, and a manufacturing plant. The entirety of the property enjoys a spacious total floor area of 712,333 square feet or 66,177.91 square meters, and is said to be worth 152 million Yuan or equivalent to US 20 million dollars.
Xiaoping Zhang, SORL Chief Executive Officer, is more than accommodating enough to explain the company’s plans: “In order to solve the current production capacity bottleneck and meet the fast growing demand for our products in the domestic OEM, aftermarket and international markets, we have decided to purchase Ruili Group’s existing facility and scale up our capacity quickly to capture the market opportunity.”
“Completing the new facility under construction would have delayed our capacity expansion until late 2008 and hindered our near-term growth. The Chinese commercial vehicle market has experienced significant growth this year and especially for heavy trucks. We are benefiting from the growth of commercial activity in China as well as robust government spending on infrastructure buildout and the maturing of the domestic logistics industry. We see very favorable market conditions for commercial vehicle auto parts. The land use rights and facilities purchased will add to our production starting in the late fourth quarter of 2007, expanding our capacity for continued growth and to enhance shareholder value.”
Hereunder is a brief description of SORL Auto Parts, as taken from the company’s official press release.
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.