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CHINA 311215

The Wanxiang Technical Center is the Research and Development Division of the Wanxiang Group Companies. The Tech Center was established in 1994 and certified as a China National Technology Center in 1996. The Center gained certification as a "Patent Approval Center" in 1999.

The Wanxiang Test Center ranks as one of the leading Research & Development Centers in China and plays an important role in the technological development of China's automotive sector.

The Tech Center is under the direction of Dr. Wang Qunfeng PhD, Zhejiang University, and Mr. Sun Guohui Senior Engineer BS in Engineering University of Science and Technology.

Shanghai Jiaotong University, East China University of Science & Technology, Zhejiang University, Tongji University and Tsinghua University all participate in joint research efforts.

The Tech Center and its staff of 150 Engineers and Researchers are open to collaboration with Universities and Research Facilities around the world. For information regarding collaborative research, contact Dr. Wang Qunfeng at: wxqc@xsptt.zjpta.net.cn .

The Technical Center is the core of Wanxiang's Technical Innovation System

The Tech Center represents the highest level in Wanxiang's R&D structure and is built upon the following characteristics:
* Focused planning
* Readily available funding
* Extensive facilities and human resources
* Progressive exploration policies
* No bureaucratic overhead and focus on its core position

The Wanxiang Group Technology Center is an advanced Research and Development facility devoted to the development of new technologies and to the continuous improvement of existing technologies.

* Founded in 1994
* Awarded for technological excellence in 1995
* Attained National Technology Center status in 1996
* Designated as an Initial Engineering and Testing Model Enterprise in 1997
* Designated as a National New Product and Innovation Model Facility in 1998
* Attained Advanced Status as a patent approval center in 1999
* Listed in the National 863 Plan as a CMIS Application Engineering Facility
* Shock Absorbers and Clutch Bearings listed in the National "Tiny Fire" plan
* National Machine Bureau lists Wanxiang's shock absorber and constant velocity joint (CVJ) in CAD1550 engineering project
* More than 150 R&D Engineers are employed by the Technology Center
* More than 70% of the equipment located in the Tech Center utilizes micro-electronics technology
* Tech Center personnel average more than 60 hours of special classroom training
* Wanxiang's annual R&D expenditures exceed 4.5% of total sales
* New products comprise over 25% of each year's sales volume
* New technology accounts for about 55% of Wanxiang's total sales
* Wanxiang has received 42 new patents in recent years
* Over 300 products have been put into production since 1996

Wanxiang's "1,3,5,8" Technology Innovation System:

"One" (one system): The core of the Wanxiang Technology Center is the system it is operated by.

"Three" (three mechanisms): Investment mechanism, Operational mechanism, Development mechanism.

"Five" (five centers): Research Center - for improving the quality of existing products, the development of new products, and innovative development and incorporation of outside intelligence. Science and Technology Center - for perfecting new technological innovation. Technological Information Center - for importing outside intelligence, to strengthen international academic interchange, and to provide systematic training for science and tech. personnel. Computer Center - to support the application of computer-aided technology. Quality Control and Inspection Center - to provide testing and development of new products, and to manage the control of quality of existing products.

"Eight" (eight divisions): For resolution of production and technological problems, and for the development of a variety of products and services for specific product lines.

Research and Development Center

Wanxiang has determined that there is a need for long-term product research and development relating to products for the automotive industries. Development areas include everything from automotive chassis systems, braking systems, steering systems and electronic control systems, to body research, production equipment and production flow. The Tech Center plans to incorporate world-class process technology coupled with advanced manufacturing techniques to pioneer such research. Current plans call for the establishment of a 'Product University" to coordinate all training facets for Wanxiang's R and D facilities and personnel. This approach will be taken to the formulation and development of new products, patents, techniques and processes and will lead to the highest degree of excellence in the manufacturing community.

Science and Technology Center

* Establish a science and technology management system in order to most effectively develop new ideas and concepts.
* Develop product and industrial engineering techniques to convert ideas into working processes and ultimately into products.
* Strive to qualify for government grants and other forms of funding and support to enable the Tech Center to maintain extremely high levels of research and development activity.
* Establish a mechanism to promote quick reaction to market requirements and changes, and to allow fast response to new technological developments.
* Constantly examine all existing and alternative processes to appraise their effect and the effect of potential changes, on overall quality and product performance.

Computer Center

* The Computer Management Center is able to coordinate use of the most modern techniques involving computer technology, to promote the most effective communications with customers all over the world.
* Apply computer technology to product development in terms of computer-aided-design (CAD), computer assisted engineering (CAE), computer aided manufacturing (CAM), et. to enable rapid prototyping and to shorten product development cycles so that we may be most responsive to customers' need.
* Through use of the aforementioned techniques, the center is better able to effectively manage all aspect of system control and also react quickly to any market changes that might affect overall production.

Technological Information Center

* Work with local and national educational institutions not only to derive the latest ideas and techniques, but also to recruit top-notch technical graduates.
* Utilize state-of-the-art information technology equipment and software to analyse and direct the overall strategic plans of the Tech Center.
* Active participation in industry trade association while at the same time working to strengthen ties between industry and the academic community will help both parties open and better serve the marketplace.
* Concentrate upon the importance of training, not only for new engineers, but for all employees. This will help cultivate the best of talents within the organization.

Inspection and Testing Center

* Through the use of the most sophisticated equipment and facilities, Wanxiang can control the testing environment to insure proper test data and product evaluation.
* By extensive use of simulations and prototyping we can compare existing designs to revolutionary ideas and approaches that have the potential to redefine products and markets.
* Nationally certified inspection and testing laboratories with state Authorized Inspection Qualification.

ISO/TS 16949:2002

Wanxiang America Corporation / Contact Info:
Pin Ni, President
Gary E. Wetzel, COO/CFO
88 Airport Road
Elgin, IL 60123
Phone: 847-622-8838
Fax: 847-931-4838
pni@wanxiang.com (Pin Ni)
gwetzel@wanxiang.com (Gary E. Wetzel)


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