Hawk Corporation Starts Up New Plant in China

04 January 2001

Hawk Corporation announced that production has begun at its newly constructed plant in Suzhou, China, a fast-growing industrial area outside of Shanghai. Hawk Composites, which is wholly owned by Hawk, manufactures friction materials for brakes, clutches and transmissions primarily for trucks and off-road vehicles. Jeffrey H. Berlin, Hawk president and chief operating officer, said, "Our new Chinese facility gives us a strong competitive position in two key areas. First, it enables us to export cost-competitive products from China to serve aftermarket customers in Southeast Asia and Europe. Second, it enables us to serve original equipment manufacturers in China, one of the world's fastest- growing and potentially largest markets for these products." Berlin said Hawk is well positioned to benefit from the potential growth in the Chinese economy. He noted that, although the Chinese facility is starting up with less than 30 employees, it is expected to become one of the Company's largest operations within five years. The current facility allows for several years of expansion. Hawk has options on additional land for further plant expansion in the future. The Company also noted that a number of its multinational customers have facilities in or near Suzhou, China, where its new manufacturing facility is based. This plant enables Hawk to serve those customers most efficiently and meets their requirements for a global supplier base.

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