PROPERTY, PLANT AND EQUIPMENT, NET

9 Months Ended

Sep. 30, 2013

PROPERTY, PLANT AND EQUIPMENT, NET [Abstract]

PROPERTY, PLANT AND EQUIPMENT, NET

NOTE 4 - Property, plant and equipment, net

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

	September 30, 2013			December 31, 2012
Buildings and improvements	$	21,363		$	20,725
Machinery and equipment		49,952			48,081
Office furniture and equipment		514			499
Leasehold improvements		-			37
Vehicles		858			872
		72,687			70,214
Less: accumulated depreciation
and amortization		(21,129	)		(16,857	)
	$	51,558		$	53,357

Four pieces of land were acquired from the acquisition of Jonway auto in 2011, and since all land in the People's Republic of China is government owned, and it 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:

	September 30, 2013			December 31, 2012
Land use right	$	10,680		$	10,558
Software		109			97
		10,789			10,655
Less: accumulated amortization		(849	)		(657	)
Less: accumulated Translation Adjustments		(74	)		(231	)
	$	9,866		$	9,767

  As of September 30, 2013, estimated future amortization expense for intangibles assets, subject to amortization, is as follows (in thousands): 

September 30 2013	Amortization Expense
2014	$	242
2015		242
2016		242
2017		242
2018		242
Thereafter		8,656
	$	9,866

Depreciation and amortization expense of property, plant and equipment, as well as land use rights and software was approximately $1.4 million and $1.8 million for the three months, and $4.5 million and $4.1 million for the nine months ended September 30, 2013 and 2012, respectively.