Tongxin Announces New Business Initiatives to Meet Customer Demand & Enhance Plant Productivity
25 Aprile 2011 - 2:00PM
Marketwired
Tongxin International Ltd., (PINKSHEETS: TXIC), a China-based
manufacturer of engineered vehicle body structures ("EVBS") and
stamped parts for the commercial automotive industry, today
announced that it is committing over $5 million USD to expand its
current painting capacity at its central operations near Changsha
and will introduce stamping capabilities at its plant in Ziyang.
The new painting capacity at Changsha is needed to meet the high
demand for Tongxin's medium- and heavy-duty painted truck cabs,
which Tongxin produces in over 400 custom variations. As the
largest independent supplier of EVBS in China, Tongxin provides
over 130 commercial vehicle manufacturers throughout 21 provinces
in China, as well as Vietnam and the Middle East, with small,
light, medium and heavy truck EVBS parts, including cab-forward and
cab-over-engine layouts used throughout the global commercial truck
industry. The Company will invest approximately $3 million into
this new painting facility, which is expected to be on line by Q3
2010.
The new stamping capability at the Company's Ziyang plant will
complement the site's current assembly capability. Previously,
stamped parts were shipped from Changsha and assembled in Ziyang.
The Ziyang expansion is a progression in the Company's overall plan
for this plant and will reduce costs and enhance capacity to meet
increased demand for EVBS from Ziyang area customers. The Company
is investing approximately $2 million to install the stamping
capability.
William E. Zielke, Chief Executive Officer and Chief
Administrative Officer of the Company, stated, "We are excited to
move ahead with these important growth initiatives. Not only are we
expanding our business to meet customer demand with this
investment, we are effectively leveraging our plant infrastructure
to reduce costs and more efficiently serve our broadening customer
base."
About Tongxin International Ltd.
Tongxin International Ltd., the largest independent supplier of
EVBS in China, is capable of providing EVBS for both the commercial
truck and light vehicle market segments. The Company also designs,
fabricates and tests dies used in the vehicle body structure
manufacturing process. EVBS consists of exterior body panels
including doors, floor pans, hoods, side panels and fenders.
Tongxin International Ltd. maintains a network of over 130
customers throughout 21 provinces in China. Headquartered in
Changsha, the Company also maintains regional manufacturing in
Dali, Ziyang and Zhucheng. For more information, please visit
www.hntx.com.
Forward-Looking Statements
Statements contained in this press release, which are not
historical fact, constitute Forward-Looking Statements. Actual
results may differ materially due to numerous important factors
that are described in Tongxin International Ltd.'s reports to the
SEC, which may be revised or supplemented in subsequent reports to
the SEC. Such factors include, among others, the cost and timing of
implementing restructuring actions, the Company's ability to
generate cost savings or manufacturing efficiencies to offset or
exceed contractually or competitively required price reductions or
price reductions to obtain new business, conditions in the
automotive industry, and certain global and regional economic
conditions. Tongxin International Ltd. does not intend or assume
any obligation to update any forward-looking statement to reflect
events or circumstances after the date of this press release.
Contact In the U.S.: Stanley Wunderlich CEO Consulting
for Strategic Growth 1 Tel: 1-800-625-2236 Fax: 1-646-205-7771
Email: Email Contact
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