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[2morrowsGains]

HRBN...Thanks jtomm. The e-mail confirms Baldor's continued relationship w/ HRBN. Baldor is a minority shareholder in the venture and has always viewed this as long term....

“The other problem you get into is you are always chasing low labor costs,” Tucker said. “First, it might be Mexico, but as wages come up then you go somewhere else, Korea or China, but you’re always chasing that low-wage rate.”

No chasing is involved with Baldor’s recent joint venture with Tech.Full Electric Co. in Harbin, China.

“Our strategy is a little different in that the manufacturing we will do there is for the Chinese market,” Tucker said. “None of those motors will come back to the U.S.”

Furthermore, Tucker said the company hopes that having offices and manufacturing there will lead to the increased export of their U.S.-made motors to China and help future sales in that country.

Problems with unstable electric power service in China makes it a ripe market for electric generators.

Baldor will assist Tech.Full with design technology, manufacturing technology and the creation of nationwide sales network in China for linear motors. Baldor also has become a minority shareholder in the Chinese company.
While agreeing that it was an “atypical” arrangement, Labick said it is a “very low risk proposition for them financially.”

What is typical for Baldor is thinking about the long-term, and Labick said that’s where the joint venture will pay off.

http://www.swtimes.com/archive/2004/August/08/business/baldor.html