24/05/07

Würth Group: Issuing of Business License for Arnold Fasteners (Shenyang) Co., Ltd. in the Würth Industrial Park Shenyang, China

Künzelsau. On 24 May 2007, the mayor of Shenyang, Mr. Li Yingjie, symbolically handed over to the Würth Group the business license for Arnold Fasteners (Shenyang) Co., Ltd., which had already been issued by the municipal authorities a week before. Li visited the Group headquarters of the Würth Group in Künzelsau-Gaisbach together with a delegation of 12 representatives of the city of Shenyang and members of the committee of the Shenyang-European Union Economic Development Zone.

In the presence of Chinese Prime Minister Wen Jiabao and Federal Chancellor Dr. Angela Merkel as well as of members of the German federal cabinet, Prof. Reinhold Würth had signed a cooperation contract between Chur-based Würth International AG and the Shenyang European Union Development Zone in the Federal Chancellery already on Thursday, September 14, 2006.

With this contract, the general conditions were laid down for the trading company of Würth (Künzelsau) to build a Würth Industrial Park in the huge North Chinese city of Shenyang. For the time being, an investment of USD 30 million is estimated for the project, which will cover an area of 30 hectares, including the possibility of erecting an own power plant there. With this strategic investment, Würth intends to set up production sites in China in several stages of completion in order to open up the Chinese market.

The handing over of the business license represents an important milestone for the further development. It was the starting signal for the first of the manufacturing companies the Würth Group plans to establish in the Würth Industrial Park in Shenyang over the next few years.

Arnold Fasteners (Shenyang) Co., Ltd., which for the time being was founded under the roof of Würth International AG in Chur, is going to be placed under the roof of Würth (China) Holding probably in September 2007. Würth (China) Holding is just being founded and will in turn be a 100 % subsidiary of Würth International AG in Switzerland. Holding is going to provide financial, personnel and IT services to its Chinese subsidiaries.

At the moment, two stages of completion are planned for the Würth Industrial Park Shenyang. In a first stage production halls and technical buildings of Arnold Fasteners (Shenyang) Co., Ltd., as well as an administration building for Würth (China) Holding Co., Ltd., will be erected on a surface of 13 hectares. The construction activities for the first stage will be started in mid-August this year. The buildings are to be finished in September 2008 so that the production can be expected to start in October 2008.

After having established Arnold Fasteners (Shenyang) that will cover all value-added steps of a screw production process, starting with the preparation of the wire over the mechanical cold-forming up to the steps of hardening and electroplating, further manufacturing companies of the Würth Group are expected to be built gradually on the remaining 17 hectares of the industrial park from the year 2010 onwards.