HRB Group and Ha'erbin Northeast M&E and Machine Tools Sales Company will set up a Joint Venture

On Feb 4, HRB Group and Ha'erbin Northeast M&E and Machine Tools Sales Company has signed a contract to set up a Joint Venture--Songbei Precision Bearing Co.,Ltd. In fact, this Songbei Precision Bearing Co.,Ltd formed on the base of the former HRB Songbei Bearing Plant(a subsidiary of HRB Group). In 1996, HRB Songbei Bearing Plant moved to the Limin Developing Zone in Ha'erbin from Wuchang city, the place where that plant was founded. In that year, the equipments of Songbei Bearing Plant has worn out or out of date; productivity was terribly low which restrict the development of the plant. At the beginning of 2002, HRB Group had signed an agreement of intent with Northeast M&E and Machine Tools Sales Company(NMMTSC) to form a joint venture, namely to rebuild the Songbei Bearing Plant. From then on, the share holders began to upgrade the old equipments, improve the management and expedite the technical reform of the plant. In the past 2 years, NMMTSC has invested RMB33 million; introduced 96 sets of equipments; improved the environment of working spot. Due to all these reforms, the appearence of Songbei Bearing Precision Co.,Ltd(former Songbei Bearing Plant) became brand new; production capacity increased. In 2004, yearly output of Songbei Bearing Precision Co.,Ltd hit 1.26 million sets; output value hit RMB65 million. Both output and output value doubled from 2001. And the quality of their product also was improved. In past, they can only manufactured P6 class products but now they can manufacture P4 class products. About NMMTSC