WEST NYACK, NY -- January 14, 2000--General Bearing Corporation (Nasdaq: GNRL) announced today that it has acquired a controlling interest in Jiangsu General Ball & Roller Company, Ltd. This new company is comprised of the operations of the Jiangsu Lixing Steel Ball Factory (Group). Terms of the transaction were not disclosed.
Jiangsu Lixing Steel Ball Factory (Group) is a manufacturer of rolling elements for bearings. Located in Rugao City, its products are sold under the "Li Xing" brand in China and internationally. Founded in 1989 as Rugao Steel Ball Factory, it has grown to become the leading manufacturer of steel balls in the Peoples Republic of China.
Commenting on the acquisition, General Bearing President David L. Gussack said, "Jiangsu is a well-established producer in the region and is perfectly positioned to meet the growing demands for high quality steel balls and rollers in Asia, Europe and the United States."
Gussack continued, "An important segment of General Bearing’s strategy is the production of various bearing components for supply to the world’s bearing industry. This acquisition will support the "rolling elements" portion of this strategy. Additionally, General Bearing’s Asian-based bearing production has been growing steadily. A controlled and reliable source of high quality rolling elements will enhance GBC’s ability to increase its production of the highest quality bearing products."
Gussack concluded, "Jiangsu has a history of profitability. This acquisition will be accretive to earnings immediately."
General Bearing has been producing bearings in China since 1987 when it led the world’s bearing industry into the region with the establishment of its first joint venture, Shanghai General Bearing Company, Ltd. General Bearing now has four joint ventures producing various product lines and components in China.
General Bearing manufactures, sources, assembles and distributes a variety of bearing components and products. The company manufactures ball bearings, tapered roller bearings, spherical roller bearings and cylindrical roller bearings. Under "The General" and the "Hyatt" trademarks, the Company supplies original equipment manufacturers in the automobile, truck/trailer, railcar, office equipment, machinery and appliance industries, as well as the industrial aftermarket.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products, product demand and market acceptance risks, reliance on key strategic alliances, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. These risks could cause the Company's actual results for the current FY and beyond to differ materially from those expressed in any forward looking statements made by, or on behalf of, the company.