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UT Automotive, Shanghai Electric Machinery Company Form Joint Venture

26 June 1998

UT Automotive, Shanghai Electric Machinery Company Form Joint Venture

    SHANGHAI, China, June 25 -- UT Automotive, a United
Technologies company, today announced the formation of a joint venture with
Shanghai Electric Machinery (Group) Company Ltd. (SEMC).
    To support its strategic expansion into the Asian automotive components
market, the new venture, named Shanghai Ri Yong-UTA Gate Electric Co., Ltd.,
will produce cooling fan modules and other motor-related products.  Each
partner owns 50 percent of the joint venture.
    "SEMC's success in offering quality products at competitive prices has
helped the company become the market leader for cooling fan modules in China,"
said Al Winslow, president of UT Automotive's Asia-Pacific Operations.  "The
coupling of SEMC's manufacturing capability and market share in China with
UT Automotive's advanced technology and reputation will make this joint
venture a strong competitor in the Chinese market, as well as other areas of
Asia."
    SEMC will contribute assets and liabilities from its subsidiary, Shanghai
Ri Yong Electric Works, to the venture.  UT Automotive will contribute cash
and assume half of the debt responsibility of the venture.
    To maintain its strong market position, the new venture will have access
to "state-of-the-art" motor and air-flow technology from UT Automotive's Gate
subsidiary, the market leader in Europe for cooling fan modules.  The new
company will be led by Ma Bao Fa, who formerly served as managing director of
Shanghai Ri Yong.
    UT Automotive is a $3 billion tier-one supplier of electrical, electronic
and interior trim systems and components to car and light truck manufacturers.
Based in Dearborn, Mich., the company has 40,000 employees and 90
manufacturing, engineering, sales and marketing facilities in 18 countries on
five continents.
    UT Automotive is a subsidiary of Hartford, Conn.-based United Technologies
Corp. , which provides a broad range of high-technology products
and services to the aerospace, building systems and automotive industries.
Ri Yong, established in the early 1960s to produce small DC motors for
automotive applications, also produces AC motors for residential air
conditioning units.  It is China's leading producer of automotive cooling fan
modules.