Lizhong Wheel qualifies as supplier to Shanghai General Motors

The company eyes to become a major supplier of aluminum alloy wheels to Shanghai GM within 2 to 3 years.

Lizhong Wheel Group Ltd. (“Lizhong Wheel”) the leading manufacturer of aluminum alloy wheels in the PRC, has recently received its maiden order of aluminum alloy wheels from Shanghai General Motors Co., Ltd., (“Shanghai GM”), China’s largest auto manufacturer with 1.04 million automobiles sold in 2010.

This marks the Group’s qualification as supplier to Shanghai GM following a series of stringent tests and assessments over the Group’s product quality and logistics systems in the past years. The Group expects to become a key supplier of aluminum alloy wheels to Shanghai GM within the next 2 to 3 years.

With Shanghai GM as its customer, the Group has extended its Original Equipment Manufacturer (“OEM”) customer portfolio to include over 15 renowned auto manufacturers.

“Our strategy is to scale up and strengthen our business. As a solid testimony of our prudent execution, we have quadrupled our annual production capacity from 2.2 million wheels in 2005 to 9.7 million wheels this year to become one of the largest aluminum alloy wheel manufacturer in Chinam according to a Lizhong Wheel report.

The recent endorsement of Shanghai GM as a qualified supplier encourages us to move towards our vision of being No.1 in the aluminum alloy wheel manufacturing space. With substantial OEM customers already in our pocket, we expect to focus on improving our pricing power and market share in the future, in a bid to further enhance the quality of our growth,” said Mr. Zang Ligen, Executive Chairman.

The Group has recently passed the quality system evaluation by Changan Ford Mazda Automobile Co. Ltd., and Changan PSA Automobile Co., Ltd, and become the qualified potential supplier to both the auto makers in the past two months.