Tongxin Secures Second On-Site Contract with Vehicle Manufacturer

Tongxin International, Ltd. (Changsha, China), a China-based manufacturer of engineered vehicle body structures (EVBS), recently announced a new contract with a leading Chinese commercial vehicle manufacturer to manufacture and assemble Tongxin's cab model 1280 on-site and in the customer's production facilities in China.

Tongxin International Ltd. is the largest independent supplier of EVBS in China and manufactures EVBS for both the commercial truck and light vehicle market segments. EVBS consists of exterior body panels, including doors, floor pans, hoods, side panels and fenders. The company also designs, fabricates and tests dies used in the vehicle body structure manufacturing process. Tongxin maintains a network of 130 customers throughout 20 provinces in China. Headquartered in Changsha, Tongxin maintains regional manufacturing in Dali, Ziyang and Zhucheng.

Tongxin will design the dies and molds and ship them to the customer, where a team of their staff will work on the customer's production line to assemble its model 1280, a cab-over-engine for heavy duty commercial trucks. Tongxin's manufacturing and assembly team will stamp the truck cab parts, assemble and weld the cab, and deliver unpainted cabs to the manufacturers' paint line for painting and interior fittings prior to final assembly on a finished truck.

The customer opted to have Tongxin assemble its cabs on-site instead of purchasing the complete cab bodies direct from Tongxin to reduce shipping expense and capitalize on Tongxin's expertise in building EVBS. Assembly began in October at the manufacturer's facility under a 3-year contract that runs through September, 2012. In addition to their in-house manufacturing of the model 1280 cab, Tongxin will continue to ship the customer several other models from its manufacturing plant in Changsha.

This is the second such type of contract involving manufacturing on the part of Tongxin at a customer's assembly plant. On August 4 the company announced its first contract with another leading commercial vehicle manufacturer. Both customers are considered "top-ten" customers of Tongxin?s more than 130-strong customer base in 21 sales regions throughout China.

"It is encouraging to see that this trend in localized manufacturing on our customer's line is beneficial for both parties," stated Duanxiang Zhang, vice chairman and CEO of Hunan Tongxin. "A contract of this type significantly develops our relationship with our customer base as it offers both a traditional option of shipments from our manufacturing sites to the customer, or, if they find it beneficial, our team assembling our designs on our customer's site. We are pleased to see our customer's turning to us for collaborative options."

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