Wafangdian Reports Rapidly Rising Sales and Profits

Wafangdian Bearing Group Corp. (Wafangdian, China) reported sales for the year, through October 2004, up sharply as profits and margins also picked up. Sales through October were up 49% from 2003. Export sales increased 66%, while overall operating margin improved by 35%. Established in 1938, Wafangdian is one of China's largest bearing manufacturers, producing ball and roller bearings, ball screws, universal joints and high-precision bearings, all under the ZWZ brand. Recently, Wafangdian won contracts to supply a Chinese government-run steelmaker with rolling mill bearings, beating out an unspecified overseas competitor -- reportedly SKF. Chairman Wang Lu Shun said Wafangdian is working hard to increase production capacity to keep pace with the high level of incoming orders. The improvements, he said, credit, "members of the Communist Party and model workers."