SHKLY Sinotruk Hong Kong Ltd (PK)

ZHANGZHOU, China, Aug. 18, 2011 /PRNewswire-Asia/ -- China Zenix Auto International Limited (NYSE: ZX) ("Zenix Auto"), the largest commercial vehicle wheel manufacturer in China in both the aftermarket and original equipment manufacturer (OEM) market by sales volume, today announced that it has entered into a Memorandum of Understanding (MOU) to form a strategic partnership with SinoTruk (Hong Kong) Limited (3808.HK) ("SinoTruk"), a subsidiary of China National Heavy Duty Truck Group, the third largest heavy-truck manufacturer in Mainland China.

Based on the MOU, Zenix Auto and SinoTruk will engage in co-developing a variety of new steel and aluminum wheel products for SinoTruk's commercial vehicle fleet, particularly next generation Euro 4 and Euro 5 compliant commercial vehicles. The next- generation products will leverage significantly reduced weight to help improve vehicle fuel efficiency while still increasing structural strength to deliver increased value to customers.

Zenix Auto and SinoTruk will also co-develop new steel and aluminum wheels for SinoTruk's new series of light-duty trucks. By entering the light-duty truck market, Zenix Auto is expanding into the largest segment of the Chinese truck market. Zenix Auto's patented proprietary technology in light-weight, steel wheels will play a critical role in spearheading the development of new products for SinoTruk's next generation of SinoTruk-MAN light-duty commercial vehicles. Utilizing its industry-leading product development team and substantial proprietary intellectual portfolio, Zenix Auto will form a dedicated product development team for this project. SinoTruk will appoint Zenix Auto as its tier one supplier for the light-duty SinoTruk-MAN commercial vehicle wheels.

Zenix Auto will provide extensive aftermarket support and service to SinoTruk customers through its extensive distribution network of more than 4,600 distributors throughout China.

Mr. Chunji Ma, Chairman of SinoTruk, said, "Since we first installed Zenix Auto's wheels in 2008, we have been pleased with their superior product quality, competitive pricing, punctual delivery, and industry-leading technology capability, which have helped us to better serve our customers. We look forward to tapping into Zenix Auto's robust aftermarket service presence and broadening our relationship in more SinoTruk vehicle models."

Mr. Jianhui Lai, Chairman and CEO of China Zenix, said, "Over the years, we have consistently delivered customized products and services that meet or exceed SinoTruk's specifications. We applaud SinoTruk's further commitment in developing long-term strategic partnerships with its key component suppliers. This new partnership also enables us to diversify our product lines into the promising light-duty truck market. Independent specialty suppliers like Zenix Auto not only demonstrate cost advantages over captive suppliers, but also provide a stronger new product pipeline. As the industry leader in the Chinese commercial vehicle wheel market, we are well positioned to further expand our leadership and extend our franchise in the commercial wheel industry," concluded Mr. Lai.

About SinoTruk (Hong Kong) Limited

SinoTruk (Hong Kong) Limited, together with its subsidiaries, engages in the research, development, manufacture, and sale of heavy duty trucks, and related key parts and components in the People's Republic of China. The company primarily offers cargo trucks and truck chassis with GVW over 14 tons, as well as semitractor trucks with trailing capacity over 12 tons. The company was incorporated in 2007 and is headquartered in Jinan, China. Germany's truck and bus maker MAN SE bought a 25 percent stake in SinoTruk.  SinoTruk (Hong Kong) Limited is a subsidiary of China National Heavy Duty Truck Group, the third largest heavy truck manufacturer in Mainland China located at Shandong.

About China Zenix Auto International Limited

China Zenix Auto International Limited is the largest commercial vehicle wheel manufacturer in China in both the aftermarket and OEM market by sales volume. With a large intellectual property portfolio, the Company offers more than 230 series of tubed steel wheels, tubeless steel wheels, and off-road steel wheels in both the aftermarket and OEM market in China and internationally. Zenix Auto's customers include group members of a number of large PRC commercial vehicle manufacturers, and it also exports products to over 70 distributors in 30 countries worldwide. With five large, strategically located manufacturing facilities in multiple regions across China, the Company has an aggregate annual production capacity of approximately 12.5 million units of steel wheels as of December 31, 2010.

For more information, please visit: http://www.zenixauto.com/en.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the revenue guidance and quotations from management in this announcement, as well as Zenix Auto's strategic and operational plans, contain forward-looking statements. Zenix Auto may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees.  Statements that are not historical facts, including statements about Zenix Auto's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our growth strategies; our future business development, including our ability to successfully develop new tubeless steel wheel products and the planned introduction of aluminum wheels; our ability to expand our distribution network; overall growth in the aftermarket and OEM market in China and elsewhere, which depends on a number of factors beyond our control including economic growth rates and vehicle sales; and changes in our revenues and certain cost or expense items as a percentage of our revenues. Further information regarding these and other risks is included in our filings with the United States Securities and Exchange Commission, including our final prospectus dated May 11, 2011. Zenix Auto does not undertake any obligation to update any forward-looking statement, except as required under applicable law.  All information provided in this press release and in the attachments is as of the date of the press release, and Zenix Auto undertakes no duty to update such information, except as required under applicable law.  

SOURCE China Zenix Auto International Limited