Packson Stands with Customers: No Price Hikes Despite Aluminum Surge

Recently, the global commodity market has experienced severe volatility, with aluminum prices hitting historic highs and bringing unprecedented cost pressures to the automotive engine manufacturing industry, which relies heavily on aluminum alloys as a core raw material. In the face of this severe external challenge, Packson Engine Factory officially announces: the prices of our core products, including cylinder head assemblies and the full range of engines, will remain unchanged, demonstrating our firm sense of responsibility to protect global customers' order deliveries and interests, and to stand with our partners through these market difficulties.

• The Onset of a Market Chill: Industry Dilemma Under Skyrocketing Aluminum Prices

As the foundational raw material for critical engine components such as cylinder head assemblies, fluctuations in aluminum prices directly impact the cost structure of manufacturing enterprises. The current surge in aluminum prices stems from a combination of global supply chain disruptions, rising energy costs, and speculative market sentiment. In just a few months, price increases have exceeded the industry's sustainable threshold, leaving many domestic engine manufacturers grappling with soaring raw material procurement costs and drastically compressed profit margins.

For Packson, aluminum alloys account for over 60% of the material composition of cylinder head assemblies. The sharp rise in aluminum prices has directly driven up the raw material cost per unit, placing immense operational pressure on the company. While many in the industry are considering price adjustments or even delaying deliveries, Packson has chosen a more challenging path: refusing to pass on cost pressures to customers, and safeguarding their interests through the company's own resilience.

• Proactively Bearing the Pressure: Absorbing Cost Shocks Through Internal Optimization

To fulfill our promise of "no price hikes, no delivery disruptions," Packson Engine Factory has launched a comprehensive set of internal optimization measures, working to absorb the impact of rising raw material costs through three key strategies: slashing operating expenses, ceding reasonable profits, and enhancing operational efficiency:

1. Strictly Controlling Non-Production Expenditures to Reduce Management and Operational Costs

   The factory has comprehensively reviewed all operating expenses, starting with non-production areas such as administrative overhead, travel costs, and marketing promotions, implementing refined budget management and suspending non-essential investments and expenditures. Every penny is directed toward production security and quality control. Additionally, the supply chain procurement process has been optimized, with long-term price-locking agreements and bulk purchasing strategies employed to minimize the marginal cost of raw material procurement.
2. Voluntarily Ceding Corporate Profits to Ensure Stable Customer Order Delivery

   For the portion of cost increases that cannot be fully offset through internal optimization, Packson has chosen to voluntarily reduce its profit margin, sacrificing short-term profitability to secure long-term customer trust and market stability. The factory's management team emphasized: "Our customers' orders are the foundation of our survival. Even if it means temporarily lowering corporate profits, we must ensure that every customer's order is produced and delivered on schedule as planned."

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• Upholding Customer-Centricity: Unchanged Commitments to Quality and Delivery

"Customer trust is the most precious asset Packson has cherished since its establishment," emphasized the head of Packson Engine Factory in an internal meeting. "Market volatility is the true test of a company's responsibility and commitment. We will never harm our customers' interests due to external cost changes—this is our solemn promise to all our partners."

Currently, Packson's production workshop in Shenyang Shenbei is operating at full capacity. All orders for cylinder head assemblies and engines are being scheduled and produced in accordance with the original plan, ensuring that every batch of orders is delivered to customers on time. Meanwhile, the factory strictly adheres to its existing quality control standards, with rigorous checks from raw material incoming inspection to finished product testing, guaranteeing that product performance and reliability consistently meet top industry benchmarks.

•  Forging a Long-Term Future: Building Trust Through Responsibility

This price stability initiative is not merely a temporary response to market fluctuations, but a vivid reflection of Packson's long-standing core values of "Quality First, Customer Foremost." Amidst future market uncertainties, Packson will continue to uphold the philosophy of "growing together with customers." While controlling costs, we will persist in increasing investment in technological research and development, optimizing product structure and capacity layout, and providing global customers with more competitive engine solutions.

We firmly believe that only by staying true to our mission amid storms and walking hand in hand with our partners through adversity can we achieve long-term development. Packson will always stand with our valued customers, delivering solid products, reliable deliveries, and unwavering responsibility to jointly overcome market challenges and create a new future for the industry.