December 21 -- Shandong Xingmin Wheel (002355) and Beiqi Foton Motor (600166) signed a strategic cooperation agreement on December 20, reports stcn.com.

According to the agreement, Xingming Wheel will finish the construction of two steel wheel production bases in Hunnan and Hebei provinces before December 2011. Each production base will have wheel production capacity of five million units.

Xingming Wheel will provide Foton Motor with auto parts at a lower price than other auto makers and will follow Beiqi Foton's product innovation schedule.

Autowheelparts: Steel wheel, Steel wheels,Alloy wheel, Wheel accessories, Wheel cover&Hubcap, Alloy Car wheel, Steel Car wheel, Steel Trailer wheel, Wheel center cap, Wheel Valve, Wheel weight, Wheel nut&bolt, Alloy ATV/Cart wheel, Steel ATV /Cart wheel, Steel Motorcycle wheel, Alloy Motorcycle wheel, Steel Wire wheel, Wheel spacer, Disc brake, Drum brake
Beiqi Foton Motor may exempt Xingming Wheel's products from inspection, if the quality of the products meet the demand of Foton Motor.

Beiqi Foton Motor agreed that it would not produce steel wheels in the next five years, while Xingming Wheel will give preference to Beiqi Foton Motor in product supply.