HARBIN, China, Oct. 19 /PRNewswire-Asia-FirstCall/ -- Harbin Electric, Inc.
("Harbin Electric" or the "Company", Nasdaq: HRBN), a leading developer and
manufacturer of a wide array of electric motors in the People's Republic of
China, today announced that Harbin Tech Full Electric Co. Ltd. ("Harbin Tech
Full"), a wholly owned subsidiary of the Company, completed the acquisition of
Xi'an Simo Motor Incorporation (Group) ("Simo Motor"), one of China's leading
electric motor companies.
On October 6, Harbin Electric announced that Harbin Tech Full had signed a
definitive agreement to acquire 100% of the outstanding shares and all of the
corresponding assets of Simo Motor in consideration for the payment of a
purchase price equal to no less than six (6) times and no more than eight (8)
times the 2008 audited net profits of Simo Motor.
As of the closing date, Harbin Tech Full had completed the registration of
the share transfer with the requisite PRC authorities and had obtained the
required business registration and transfer of licenses of Simo Motor, all as
contemplated by the definitive agreement. On October 13, Simo Motor changed
its name to Xi'an Tech Full Simo Motor Co. Ltd.
The Company believes that the acquisition of Simo Motor is the most
significant step to date in the Company's strategy to expand its industrial
rotary motor business to large size and special type of rotary motors. The
Company anticipates that this acquisition will further strengthen the
Company's leading position in the electric motor industry in China. The
Company intends to immediately begin the process of integrating Simo Motor
into its existing businesses.
About Simo Motor
Simo Motor was initially established in 1955 as a state-owned company and
one of the major backbone companies of China's electric motor industry. Since
then, Simo Motor has become a leading developer and manufacturer of industrial
rotary motors that provides solutions for electrical driving systems. In
January 2004, Simo Motor was privatized as a shareholding company. It
develops and manufactures various industrial motors including some 28 series,
over 450 categories and more than 8,000 models of high and low voltage, small,
medium, and large-sized motors with output power ranging from 0.35kW to
13,200kW. Its products are widely used in the machine tool, pump, blower,
compressor, transportation, agriculture and food industry, steel rolling,
power supply, building and construction materials industry, aviation,
navigation, hi-tech fields, etc. The Company sells its products primarily in
China and also in the advanced industrial markets of North America, Europe and
Asia as well as in Africa, Southeast Asia and the Middle East.
Simo Motor is located in Xi'an City's Economy and Technology Development
Zone, Shaanxi province, China. It occupies 200,000 square meters of land and
employs more than 2,000 people. Its address is No.159 Ming Guang Road,
Economy and Technology Development Zone, Xi'an, Shaanxi Province, the People's
Republic of China.
About Harbin Electric
Harbin Electric, headquartered in Harbin, China, is a leading developer
and manufacturer of a wide array of electric motors with a focus on innovative,
customized and value-added products. Its major product lines include linear
motors, automobile specialty micro-motors, and industrial rotary motors. The
Company's products are purchased by a broad range of domestic and
international customers, including those involved in oil services, factory
automation, food processing, packaging, transportation, automobile, medical
devices, machinery and tool manufacturing, petrochemical, as well as in the
metallurgical and mining industries.
Harbin Electric has built a strong research and development capability by
recruiting talent worldwide and through collaborations with top scientific
institutions. The Company owns numerous patents in China and has developed
award-winning products for its customers. Through its U.S. and China-based
subsidiaries, the Company operates three manufacturing facilities in China
located in Harbin, Weihai, and Shanghai with a total of approximately 1,800
employees. Each of the three manufacturing facilities is dedicated to a
specific product line and is equipped with state-of-the-art production
equipment and quality control systems.
As China continues to grow its industrial base, Harbin Electric aspires to
be a pioneer in leading the industrialization and technology transformation of
the Chinese manufacturing sector. To learn more about Harbin Electric, visit
http://www.harbinelectric.com .
Safe Harbor Statement
The actual results of Harbin Electric, Inc. could differ materially from
those described in this press release. Detailed information regarding factors
that may cause actual results to differ materially from the results expressed
or implied by statements in this press release may be found in the Company's
periodic filings with the U.S. Securities and Exchange Commission, including
the factors described in the section entitled "Risk Factors" in its annual
report on Form 10-K for the year ended December 31, 2008. The Company does
not undertake any obligation to update forward-looking statements contained in
the press release. This press release contains forward-looking information
about the Company that is intended to be covered by the safe harbor for
forward-looking statements provided by the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are statements that are not
historical facts. These statements can be identified by the use of
forward-looking terminology such as "believe," "expect," "may, "will,"
"should," "project," "plan," "seek," "intend," or "anticipate" or the negative
thereof or comparable terminology, and include discussions of strategy, and
statements about industry trends and the Company's future performance,
operations and products.
For investor and media inquiries, please contact:
In China
Harbin Electric, Inc.
Tel: +86-451-8611-6757
Email: MainlandIR@Tech-full.com
In the U.S.
Christy Shue
Harbin Electric, Inc.
Executive VP, Finance & Investor Relations
Tel: +1-631-312-8612
Email: cshue@HarbinElectric.com
Kathy Li
Christensen Investor Relations
Tel: +1-212-618-1987
Email: kli@christensenir.com
SOURCE Harbin Electric, Inc.