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Beijing:Joint with exterior resources

Jorvan From GAS| January 25 , 2007

Recently, Beijing Retropack Pump Company, a subsidiary under Beijing Auto holdings and Zhejiang Asia-Pacific Electrical and Mechanical Ltd jointly set up Beijing Asia-Pacific Vehicle Chassis Systems Ltd, with extension of the automobile industry chain, and a strategic move to build auto parts industry. Beijing Auto Holdings which owns Beijing Hyundai, Beijing Benz, Foton Auto and Beijing Auto four auto plants.

According to Guo Xinmin, deputy general manager of Beijing Auto Holdings revealed that apart from Zhejiang Asia-Pacific Electrical and Mechanical Ltd., the company is also working with four to five well-known domestic and foreign auto parts enterprises at present and cooperation agreement can be signed with two companies in the near future. Building new spare parts industry can not only vitalize the existing stock of assets, enhance vehicle parts self-sufficiency, but also influence Bohai Economic Rim, and open up overseas markets.

On December 16, 2006, under the Beijing Auto Holdings, Beijing Car and Motorcycle Joint Manufacturing Company, Beijing Guanghua Auto Parts Company and Shandong Xinghua Plate Spring Manufacturing Company signed a joint venture agreement to set up a Beijing Xinghua Plate Spring Manufacturing Company. In August, Beijing Car and Motorcycle Joint Manufacturing Company and Delphi set up a joint venture company in the production of vehicle seat belts in Changping District in Beijing.

"Beijing Auto Holdings and Zhejiang Asia-Pacific cooperation projects activated the stock assets, which will fill the blank of Beijing spare parts for their products." Xu Heyi, director of Beijing Auto Holdings expressed, "In auto parts manufacturing, through enterprise restructuring and research and development capabilities, Beijing Auto holding assets will create a competitive auto parts production base."

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