PROPERTY, PLANT AND EQUIPMENT, NET

3 Months Ended

Mar. 31, 2013

PROPERTY, PLANT AND EQUIPMENT, NET [Abstract]

NOTE 4 - Property, plant and equipment, net

Property, plant and equipment, are summarized as follows (in thousands):

	March 31, 2013		December 31, 2012

Buildings and improvements	$	20,816	$	20,725
Machinery and equipment		48,580		48,081
Office furniture and equipment		501		499
Leasehold improvements		37		37
Vehicles		875		872
		70,809		70,214
Less: accumulated depreciation
and amortization		(18,288)		(16,857)
	$	52,521	$	53,357

Four pieces of land were acquired from the acquisition of Jonway auto in 2011, all land in the People's Republic of China is government owned and cannot be sold to any individual or company. However, the government grants the user a "land use right" (the Right) to use the land. The Company has the right to use the land for 50 years and amortized the Right on a straight-line basis over the period of 50 years. Intangible assets consist of the following:

	March 31, 2013			December 31, 2012
Land use right	$	10,250		$	10,217
Software		106			97
		10,356			10,314
Less: accumulated amortization		(570	)		(547	)
	$	9,786		$	9,767

As of March 31, 2013, estimated future amortization expense for intangibles assets, subject to amortization, is as follows (in thousands):

	Amortization
Year	Expense
2013	$	182
2014		242
2015		242
2016		242
2017		242
Thereafter		8,636
	$	9,786

Depreciation and amortization expense of property, plant and equipment, as well as land use rights and software was approximately $1,535,000 and $1,135,000 for the three months ended March 31, 2013 and 2012, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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