Newly designed models signals growing sales segment for Tongxin and will contribute $4 to $6 million to revenues in 2010
CHANGSHA, China, Dec. 21 /PRNewswire-Asia/ -- Tongxin International Ltd. (Nasdaq: TXIC), a China-based manufacturer of engineered vehicle body structures ("EVBS" or "truck cabs"), today announced the introduction of two newly-designed medium and heavy-duty truck cabs for the commercial vehicle market in China.
Throughout 2009, Tongxin International allocated R&D and marketing efforts to develop and expand its product offering to the growing medium and heavy-duty EVBS truck segments in China. The Company's new models, "Tianjiao" and "Tianrui", are currently in vehicle validation and awaiting final approval of shipping schedules from Tongxin's customers. Serial production is anticipated in the first quarter of 2010.
Tongxin will manufacture an unpainted and finished version of each cab model. Unpainted models will ship directly to customers from Tongxin's assembly facility in Zhucheng. Painted and finished cabs will be fitted with a customer-specific interior and instrumentation and ship from Tongxin's Changsha-based manufacturing headquarters. Tongxin has calculated revenues from the new models to accelerate throughout the year. The Company has forecasted $4 million to $6 million in revenues in 2010 from its new models and customer contracts.
Currently, medium and heavy-duty truck cab sales account for less than 10% of Tongxin sales. For the nine months ended September 30, 2009, the addressable market of medium and heavy duty truck cabs in China was $2.3 billion based on an estimated 620,000 units at an average content value $3,700 per cab.
About Tongxin International Ltd.
Tongxin International Ltd., the largest independent supplier of EVBS in China, is capable of providing EVBS for both the commercial truck and light vehicle market segments. The Company also designs, fabricates and tests dies used in the vehicle body structure manufacturing process. EVBS consists of exterior body panels including doors, floor pans, hoods, side panels and fenders. Tongxin maintains a network of 130 customers throughout 20 provinces in China. Headquartered in Changsha, Tongxin also maintains regional manufacturing in Dali, Ziyang and Zhucheng.
FORWARD LOOKING STATEMENTS
Statements contained in this press release, which are not historical fact, constitute "Forward-Looking Statements." Actual results may differ materially due to numerous important factors that are described in Tongxin International's most recent report to the SEC on Form 6-K, which may be revised or supplemented in subsequent reports to the SEC. Such factors include, among others, the cost and timing of implementing restructuring actions, the Company's ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually or competitively required price reductions or price reductions to obtain new business, conditions in the automotive industry, and certain global and regional economic conditions. Tongxin International does not intend or assume any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
For more information, please contact:
COMPANY:
Mr. Rudy Wilson, CEO
Tel: +1-248-593-8330
Email: rudy@txicint.com
Ms. Jackie Chang, CFO
Tel: +1-626-660-7117
China: +86-134-6755-3808
Email: jackie@txicint.com
Web: http://www.txicint.com
INVESTOR RELATIONS:
John Mattio, SVP
HC International, Inc.
Tel: +1-203-616-5144 (U.S.)
Email: john.mattio@hcinternational.net
Web: http://www.hcinternational.net
