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The eBearing News
November 11, 2004
China Henan Special Steel Plans IPO
copyright © 2004 eBearing Inc.
China Special Steel (CSS, Henan Province, China) announced it is planning an initial stock
offering for late 2004 or early 2005.
CSS manufactures bearings and springs, primarily for the domestic Chinese auto industry.
The company said it expects to raise HK$300 to HK$500 million (USD $38.5 to $64.5 million)
in the share sale.
A shadow over CSS, however, is the dramatic recent slowdown in China's auto industry. Central government
credit tightening, coupled with a glut of manufacturing capacity, produced not just an oversupply
of vehicles in the market, but also a drop in demand.
The pace of auto sales in China has fallen off dramatically. After doubling in 2003, sales should be up
only 20% in 2004. Slower growth and oversupply have prompted GM and VW, among others, to become
locked in price-cutting wars to keep sales and production up. Some GM and VW models have seen
price cuts as much as 12% recently.
Most auto industry analysts do not expect China's auto market to recover strength before the end of 2005.
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
trademarks of eBearing Inc.
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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