Press Conference on Joint Venture and Cooperation between Wafangdian Bearing Group and JKEKT

In the afternoon of September 24, Wafangdian Bearing Group and JTEKT jointly held a press conference in S&N Hotel in Dalian City. The two parties officially signed cooperative letter of intent on a mutual-supplementary and reciprocal basis, aiming to build shared market, technology, manufacturing and benefits in Chinese bearing market via the forms of joint venture enterprises, technological cooperation and supply chain sharing to deliver world-class products and services.

Wafangdian Bearing Group and JTEKT have been in business relationship for years. As early as 1996, the two parties formed a joint venture: Dalian Koyo Wazhou Automobile Bearing Co., Ltd which achieved outstanding performance. Following on this successful cooperation, the letter of intent, this time, mainly focuses on three aspects: 1. the bearing project for sedan cars through a joint venture enterprise in Dalian, manufacturing bearings for wheel hub, gear box and engine. The total investment is projected to be RMB 1 billion in which Wafangdian Bearing Group and JTEKT input 50% respectively. The project aims to top the market share of sedan car bearings in China. 2. The bearing project for high-speed railway, covering the wheel hub and gear box via the form of joint venture with Wafangdian Bearing Group as controlling shareholder. 3. The bearing project for cargo railway, wind mill and medium-and-large-sized forge piece through sharing supply chains between the two parties.