| Shandong Wei Chai Huafeng Power Co Ltd. (“Huafeng Power”), whose predecessor is the Second Engine Works of Weifang Diesel Engine Factory, is principally engaged in the manufacture and sale of low to medium power multi-cylinder diesel engines. Our diesel engines are used primarily for operating various types of machinery and equipment in the power generator, agricultural equipment and machinery and construction machinery industries. Such machinery and equipment include power generators, tractors, harvesters, irrigation equipment, excavators, wheeled loaders and forklifts. Our engines are also used in small marine vessels and medium-duty trucks.
The core products of our Group are the R-series and the 495-series diesel engine. Most of our engines have either four cylinders or six cylinders, with an output range of approximately 24kW---155kW. The annual production capacity of the diesel engine and generating sets is approximately 60,000 sets.
our diesel engines are sold to customers operating within the PRC. These customers include manufacturers of agricultural and construction related machinery and equipment, as well as manufacturers of trucks and vessels. The machinery, equipment, trucks and vessels produced by our customers are not only sold within the PRC but are also exported to overseas markets. Our customers also include distributors who on-sell our diesel engines to power generator manufacturers operating within as well as outside of the PRC. Through the export of our customers’ end-products and the sale of our diesel engines by distributors to overseas markets, our products have been exported to countries and regions such as Taiwan, South Africa, Greece, Turkey, Indonesia, Vietnam, Pakistan, Sudan, India, the US and Ecuador.
In order to strengthen and expand our customer base, we have developed a wide marketing and after-sales service network. To-date, we have sales personnel stationed in 24 different locations throughout the PRC and have 170 authorised repair centres in various parts of the PRC.
As a result of our research and developments efforts, we are able to produce more efficient and environment-friendly hybrid engines which can be powered by either diesel or natural gas or a combination of both.? Another product of our research and development efforts includes the production of diesel engines which are specially designed to achieve low emissions levels.? These engines are used for powering on-road vehicles and have attained the PRC equivalent of the EURO II Standard.
We have a strict quality control system and impose rigid criteria in the maintenance of our quality management standard. Our quality assurance measures include quality assurance at the raw material procurement stage, during the production process and at the final stage before the products are delivered to customers. Our quality control processes and procedures are performed and enforced by our Quality Inspection Department.
Our predecessor, Weichai Factory received the ISO 9001:1994 certificate issued by the CCIB. Weichai Factory was awarded the ISO 9001:2000 certificate on 11 April 2002 by the CQC. On 25 February 2006, Huafeng Power obtained the ISO 9001:2000 certificate from British Standard Institution (BSI) Management Systems. We have also applied for the ISO/TS 16949:2002 certificate which we are expecting to obtain by May 2006.
The pursuit for excellence in every aspects of our work is never-ending. We hope that with the cooperation from our customers, suppliers and other stakeholders, Huafeng Power can map out a brighter future in the diesel engine manufacturing industry.
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