Jinzhou Jinheng wins order with FAW-VW, buys Liaoning Hechang

SHANGHAI -- Jinzhou Jinheng Automotive Safety System Co. sees sales climbing 25 percent this year, thanks partly to the acquisition of a domestic airbag maker and a new order from FAW-Volkswagen Automotive Co.

"This year we expect sales of 700 million yuan ($102.5 million)," says Golden Sun, general manager of Jinzhou Jinheng's international business department.

That is up from 550 million yuan last year. Lifting results are expanded capacity, a bigger product line up and new orders. In June, Jinzhou Jinheng also bought local airbag maker Liaoning Hechang Automotive Safety Technology Co.

Jinzhou Jinheng began producing side airbags in March this year at a new 7,000-square meter facility at its base in Liaoning province. The new plant will also produce driver air bags.

Jinzhou Jinheng has annual capacity for 2 million air bag modules. Production this year is forecast to reach 800,000 modules, Sun says. An airbag module includes driver, passenger and side airbags, electronic control units and the wire harness system.

The acquisition of Liaoning Hechang will expand Jinzhou Jinheng's airbag capacity by 25 to 30 percent, says Sun.

"We want to expand our market share," Sun says, "We also want to acquire their production facility. They have an airbag production line and test facility."

Liaoning Hechang is a long-time supplier to Chery Automobile Co. Based in Shenyang, Liaoning province, it has airbag production facilities as well as an environmental performance testing facility and sled and crash test centers.

New business this year includes orders for passenger airbag covers from FAW-Volkswagen Automotive Co. The company will supply 6,000 covers a month.

Exports are also poised to increase. Starting next year, Jinzhou Jinheng will export driver and passenger airbags to Iran Khodro Co., which operates a joint venture in Iran with Chery. Shipments are seen at 30,000 airbag sets a year.