In the company’s news yesterday,
China Precision Steel announced it has strengthened its presence in China and Africa, reflected by an increase in order from the regions. Even in a tough market, China Precision Steel said demand for its products remains high and the company is running its facilities at full capacity.
“We are experiencing strong demand for our high precision, cold-rolled steel products despite the current global slowdown. Our production facilities remain fully occupied and we continue to negotiate new contracts with manufacturers who are switching from higher cost imports,” Dr. Wo Hing Li, China Precision Steel’s chairman and CEO stated in the press release.
China Precision Steel attributes the continued strength to domestic customers looking for an alternative to high-cost international prices. The company’s close proximity to domestic customers allows for cheaper transportation costs and for in-person customer interaction.
The company said that despite economic woes and consumer pull-back, it is has established a foothold in the market that will allow it to maintain solid business and future expansion.
“While we are experiencing a slight reduction in orders from some customers who are reducing inventories and orders from markets such as Southeast Asia are slowing as a result of the global economic slowdown, we believe we are well positioned for continued growth as we have a broad and diversified customer base and are not dependant on any one industry. Our overall business remains healthy as we are increasing our share of the total market for high-precision, cold-rolled steel products,” Dr. Hing Li stated.
One of China Precision Steel’s new customers previously relied solely on imported precision steel products and now looks closer to home for its materials needs. Per the recently announced agreement with Nanjing Valeo Clutch Co. Ltd. (NVCC), China Precision Steel will manufacturer high carbon, cold-rolled clutch discs for NVCC and has received specifications to supply test samples of a second clutch disc design.
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