Synerject to Expand into China


Leading Non-Automotive OEM Engine Management Supplier Creates Chinese Subsidiary to Support Asian Business

NEWPORT NEWS, Va.-- Synerject LLC, a joint venture formed by Siemens VDO Automotive and Orbital Engine Corporation, today announced the creation of the fully owned Chinese subsidiary Synerject Motorcycle Systems Changchun Co, Ltd. to support its Asian expansion initiative. Registration of the new Synerject operation and business entity, which is headquartered in Changchun, North East China, was approved by the local and provincial governments this September and is now complete.

"This initiative complements Synerject's current manufacturing base for production of engine management modules and components," said Synerject President and CEO Stephane Tagliante. "It is primarily aimed at supporting Synerject's growing business commitments in the Chinese market, while securing a high quality manufacturing location from which to supply products to the rest of Synerject's Asian region."

The Synerject initiative is comprised of two operational elements: the creation of a Manufacturing Center in Changchun; and, the opening of a sales and application engineering support center in Chongqing.

"The Changchun Manufacturing Center is in the process of preparing for a target start of production date this spring," said Tagliante. "It will initially manufacture our new integrated engine management throttle body, a new Synerject product specifically designed to meet the needs of the small displacement motorcycle and scooter engines used throughout most Asian countries."

Synerject's Changchun manufacturing operation is housed within corporate parent company Siemens VDO's existing automotive electronics production facility. Collocating with Siemens VDO offers Synerject access to support services already in place, as well as manufacturing technologies synergies between the automotive and non-automotive electronics products.

"The decision to locate along side Siemens VDO has enabled us to move very quickly and gives us immediate access to a very qualified and well-trained employee pool," said Didier de Vulpillieres, general manager of the new Synerject Chinese engineering and manufacturing entity. "In addition to the fact our electronic circuit boards will be produced in the same facility, the Changchun operation provides an ideal platform from which we can meet our customer commitments and quickly grow in China and surrounding Asian region."

The Chongqing Sales and Application Engineering Support Center is scheduled to open in early 2007. The facility will be equipped with the state-of-the art engine and vehicle test and calibration equipment needed to customize and calibrate motorcycles to meet legislated and customer requirements.

"Implementation of this aggressive Synerject initiative in China is a significant strategic commitment," said Tagliante. "It provides us with the tools needed to address Asia's growing market potential, as a result of the anticipated introduction and implementation of stringent motorcycle engines emission control legislation."

Synerject has proven its engine management technologies for motorcycle applications in Europe and North America for more than 10 years. Tagliante states creating an active presence in China, which produces half of all the world's motorcycles, was absolutely mandatory.

Synerject, headquartered in Newport News, Va., was formed between Siemens VDO Automotive Corp. and Orbital Corporation Ltd. in 1997 and has additional offices in France. Synerject supplies engine management systems, modules and components for the marine, recreational, motorcycle and industrial markets. The scope of its product offerings ranges from vehicle fuel delivery systems to complete engine management modules. More information on Synerject can be found at www.synerject.com or by phone at (757) 890-4900.

Contacts

North America

Brad Warner,
Siemens VDO,
248-209-5826,

brad.warner@siemens.com

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