C&U Group Purchased HBP's Standard Component Section

Dec. 29 2004 It costed C&U Group RMB32 million to purchase the standard component section of Huangshi Bearing Plant(HBP). This can be regarded as a improvement of C&U's expansion strategy. The standard component section was the outcome of HBP's technical reformation and founded in 1996. This section has introduced top grade hot upset forging equipment HBP-160 and HPF-100. But as a result of the limitation from both system and marketing, the standard component section of HBP had to face the bankruptcy, so the two machines have never been taken good use of in that section. In 1999, C&U contacted HBP for cooperation. At first C&U wanted to purchase this section, but HBP was not willing to desert it. So the negotiation of cooperation lasted nearly 2 years. In 2001 the two company agreed to sign a lease contract which allowed C&U to manage the standard component section but didn't sell any equity of the section to C&U. The cooperation had been finished but problem of the equity's ownership troubled the two company all the time. Oct. 27 2004, the related department of Huangshi city invited public biding for the equity transfer of HBP's standard component section. C&U seized the chance to purchase the equity. We beliebe that the standard component section will develop well under the control of C&U. About C&U Group