United Dominion unit to produce metal buildings in China

Business Wire, April 6, 1995

SAN FRANCISCO--(BUSINESS WIRE)--April 6, 1995--Varco-Pruden, a unit of United Dominion Industries (NYSE,TSE:UDI), today announced the signing of a preliminary agreement for a joint venture to manufacture pre-engineered metal building systems in China.

Varco-Pruden, the second largest U.S. manufacturer of metal buildings and building systems, will join forces with Baoshan Iron and Steel Corporation of Shanghai and International Steel Company, a subsidiary of a Taiwanese steel maker, to form Baochen Steel Construction Corporation (BSCC). Boashan Iron and Steel, the largest and most modern steel manufacturer in China, along with a local entity, will own 40 percent of the BSCC joint venture with International Steel and Varco-Pruden owning 30 percent each. The agreement is subject to government approvals.

United Dominion will invest $5 million in BSCC and Varco-Pruden, will provide on-going technical and manufacturing support and management for the China venture. BSCC will have an initial capacity to produce approximately 40,000 tons of metal building components by the end of 1995. Future plans call for the BSCC/Varco-Pruden joint venture to establish additional production plants in other areas of China.

"We believe BSCC will become the preeminent supplier of pre-engineered metal building systems in China and applaud Varco-Pruden's long-term view," said Dr. Sun Di Peng, who will serve as BSCC's first chairman.

"By entering this joint venture, Varco-Pruden establishes itself in a rapidly growing market that potentially will become larger than even the U.S. market," said Varco-Pruden President Duane L. Stockburger. "With China's 1.2-billion population and strong economic growth, we expect demand for metal building systems to grow exponentially," he said.

Varco-Pruden's advanced computer-based, proprietary engineering, order processing and scheduling system will be employed by the joint venture to tap this market, according to Varco-Pruden officials.

"The investment by United Dominion in BSCC signifies that BSCC will become a technological and market leader in both the China and Asia-Pacific markets," said Ted Chi-Fan I., chairman of International Steel.

Headquartered in Memphis, Tenn., Varco-Pruden has seven manufacturing facilities in the United States and licensing agreements in four countries.

United Dominion is a diversified manufacturer of proprietary, engineered products with operating locations in 14 countries and annual sales exceeding $2 billion. Aggressively pursuing international markets is one of United Dominion's growth strategies. Over the next five years, the company expects to double earnings and revenues from international sources to 35 percent.

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Note to Editors: Varco-Pruden's U.S. plants are located in Kernersville, N.C.; Rainsville, Ala.; Pine Bluff, Ark.; Van Wert, Ohio; Evansville, Wisc.; St. Joseph, Mo.; and Turlock, Calif. Its licensees are located in Japan, Korea, Spain and Egypt.

CONTACT: United Dominion Industries

Nancy H. Spurlock, 704/347-6838