WEST NYACK, NY -- April 16, 2001--General Bearing Corporation (Nasdaq:GNRL) announced today that it has signed an agreement increasing its ownership of Ningbo General Bearing Company, Ltd. (NGBC) of Ningbo, China, to fifty percent. NGBC is a partnership between General Bearing Corporation of New York and China Ningbo Genda Group Co., Ltd., of Ningbo, China. Terms of the transaction were not disclosed.
The Company said that NGBC has received all necessary approvals for the new capital structure, under which General Bearing Corporation will have management control.
Established in 1996 to provide high-quality, cost-effective bearings and components to the U.S. automotive industry, NGBC is an ISO9002 and QS-9000 certified facility. Since October 2000, the prestigious Ford Q1 flag has flown at NGBC.
General Bearing President, David L. Gussack said, "NGBC has successfully served the U.S. automotive industry for five years. However, demand for the General Bearing blend of cost and quality is very strong. Absent this increased investment, demand will eventually outstrip capacity. This investment will be used both for plant expansion and quality initiatives, positioning General for continued growth."
General Bearing 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.