Brake System Joint Ventured Formed In China

Autoparts Report, Dec 4, 2002

NewTech Group International, Inc., NewTech Brake Corp., and Suzhou Bus Manufacturing Co. Ltd., a joint venture controlled by Zhejiang Jinggong Group Co. Ltd. and Suzhou Chuangyuan Group Co. Ltd., said that they have entered into an agreement to establish a cooperative joint venture company for the manufacture and sale of the NewTech industrial heavy vehicle brake for trucks, trailers and busses in China.

Under the terms of the Memorandum of Understanding signed by the parties in Suzhou, China on October 21, and subject to approval by the Chinese authorities, the joint venture company, NewTech (Suzhou) Brake System Co. Ltd., will be controlled equally by Suzhou Bus Manufacturing Co. and NewTech Group International, Inc.

The new joint venture company will open a brake assembly plant in Suzhou Industrial Park and initially assemble, sell and distribute NewTech brake systems in China from brake component parts supplied by NewTech Brake Corp. and when assured quality standards are met, will in turn supply cost effective, brake components back to NewTech Brake Corp. for distribution in Europe and North America.