Shanghai AoHong, a subsidiary of China America Holdings, Inc. has signed an agreement with China FAW Group Corporation to supply the company with its refrigerant R134A product. This agreement is expected to generate sales of approximately $2.5 million for 2008.
China America Holdings owns 56% of the Chinese-based Shanghai Aohong Industry. Shanghai Aohong distributes hydrofluorocarbon (HFC) refrigerants used in a variety of applications, primarily as coolants in automobile, residential and commercial air conditioning systems, refrigerators, fire extinguishing agents and assorted aerosol sprays. Shanghai Aohong is focused on providing environmentally friendly products worldwide to multiple markets.
China FAW Group is a global leader in the vehicle manufacturing industry and the country’s leading auto maker selling products in over 70 countries around the world. FAW manufactures quality light, medium, and heavy-duty trucks, automobiles, municipal buses and luxury tourist coaches, custom bus chassis, and mini-vehicles with total sales in excess of 7 million vehicles worldwide. On its own, China FAW has joint venture operations with Volkswagen, Mazda, and Toyota.
Commenting on the contract, Dore Perler, CEO of China America Holdings, stated, “Aohong continues to establish business with marquee customers as its distribution channel strengthens. Management believes that this R134A supply contract with China FAW will lead to a stronger relationship with China America and the opportunity to increase product sales to China FAW in 2008. Refrigerant R134A is an inert gas used primarily as a “high-temperature” refrigerant for automobile air conditioners. China FAW Group uses refrigerant R134A in the air conditioning systems of manufactured automobiles.”
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