After 8 months of preparation by a dedicated Sino-Japanese team of employees, Fawer Y-Tec Chassis Parts Co., Ltd. held an opening ceremony on June 16 at its new Changchun plant. It means that the Company has completed the base construction for the workshop building and other facilities, formally starts production operation. Mr. Teng Tieji, vice president of FAW Group Corporation, Mr. Ye Fan, general manager of Fawer Automobile Part Co., Ltd. and other Sino-Japanese guests attended the opening ceremony.

Fawer Y-Tec is a joint venture between Fawer Automotive Parts Co., Ltd., Y-TEC Corporation, and Sumitomo Corporation with a contractual duration of 30 years. Construction began in October 2005. With a total investment of 237.3 million Yuan (RMB), the share ratio is 40%, 40% and 20% respectively. The company site covers 37,800 square meters with a building area of 11,177 square meters. Fawer Y-Tec employs a talented, highly-trained staff of over 60 people. The company utilizes advanced production techniques under license from Y-TEC in the production of Mazda6 chassis parts for FAW Car Co., Ltd..

The joint venture's main products include front subframes, rear subframes, lower control arms, and longitudinal arms. Annual production capacity is expected to reach 70,000 units by 2008. The factory includes a hydroforming line, welding line, and paint line. Fawer Y-Tec is the first company in China to make use of the advanced technique of hydroforming, an advanced new process in which single metal pipes are formed into desired shapes using fluid pressure, resulting in lower production cost and parts that are lighter, stronger, and more precise. Precision, high-speed welding is accomplished by 35 state-of-the-art electric servo-driven robots from FUNAC Robotics. Controlled via a Mitsubishi PLC control system, the robots are formed into several task-specific arc welding systems. The system includes a diagnostics function that can automatically detect when quality issues occur. The paint line uses an advanced cathodic electrocoat (E-Coat) process with an automated control system designed and manufactured by the Nippon Paint Co., Ltd..

"The joint venture will provide competitive, high quality chassis parts for Mazda6 production at FAW Car Company," stated Mr. Ye Fan, general manager of Fawer Automotive Parts Co., Ltd., at the opening ceremony. "Furthermore, we will provide support for the development of FAW's upcoming new range of passenger cars and contribute to the development of Changchun's automotive industry. The company will repay shareholders with good business results."

Fawer Automotive Parts Company Ltd. is a wholly owned subsidiary of FAW Group. It includes 7 automotive component and systems plants and 14 joint venture facilities.

Y-TEC Corporation was founded in March 2001, the result of a merger between Yamako Company and Mitsuba Kogyo Co., Ltd.. Both parent companies design and manufacture automotive frames, other metal parts, and die tooling.

Sumitomo Corporation Group is engaged in a diverse range of business activities throughout its worldwide network. Its wide range of services and investments include metals, transportation and construction systems, machinery and electricity, media, electronics and network, chemicals, mineral resources and energy, consumer goods and services, materials and real estate, and finance and logistics.

FAW Group is a leading global manufacturer of quality passenger cars, trucks, and buses. Established in 1953, the company is China's oldest and largest automotive group. Annual sales exceed one million units.