Shanghai, July 22 (Gasgoo.com) Guangdong Hongtu Tech. (Holdings) Co., Ltd. , a Chinese manufacturer of precision aluminium alloy die casting parts, announced last week that it has recently signed a contract with a Canada-based company, Vikeda Industries Inc., to supply auto engine brackets for Chrysler LLC, an American auto-maker, reported Shanghai Securities News Monday.
The contract is valued at a total of US$27,380,403 and with a valid period of three years from January 1, 2008 to December 31, 2010. The contract value will be paid in three years: $4,256,461.9 in 2008, $11,197,812 in 2009, and $11,926,129.1 in 2010.
Vikeda Industries Inc, a tier-1 supplier designated by Chrysler, sources auto parts from Guangdong Hongtu according to the requirements of Chrysler. Vikeda has cooperated well with Hongtu for two years and has never failed to fulfill any contract terms.
Although the contract value is paid in installments over three years, Hongtu said this will not have too much influence on its corporate financing, operation or profit-making.
The initial payment of $4,256,461.9 this year, which is equal to about 29.2 million yuan based on the agreed exchange rate, amounts to 6.06% of Hongtu's revenue in 2007.
