CHINA Precision Steel Inc. (CPSI) has signed a new contract to supply precision steel to Puyat Steel Corp. The Sheung Wan, Hong Kong-headquartered company, however, excluded an amount for the contract.
Nonetheless, the statement quoted chief executive Hai Sheng Chen as saying that the owners of Puyat Steel, which makes the APO-branded galvanized iron roofing products, visited the manufacturing facilities in Shanghai, People’s Republic of China.
“Before Puyat signed a contract with us, they conducted a full site visit in May to ensure we would be able to meet their high manufacturing quality standards. Therefore, we believe this contract not only benefits us through expanding our international sales but also reinforces our position as a manufacturer of top quality, high-strength, precision steel products,” the statement further quoted Chen as saying.
The company said in its report to the US Securities and Exchange Commission (SEC) it conducts operations principally in China through wholly owned operating subsidiaries, Chengtong and Shanghai Blessford.”
The company said most sales are made domestically in China. When it began exporting during fiscal 2007, its overseas market of five countries in Asia, the Caribbean, and Africa excluded the Philippines.
The company didn’t say if its supply contract with Puyat Steel is its first in the country.
Incorporated in the Philippines in 1984, Puyat Steel manufactures galvanized iron sheets, roofing tiles and construction materials from two plants, one in Manila and the other in Batangas.
Its supply contract with CPSI comes three years after Puyat saw its net income drop 87.8 percent in 2008 from a high of P53.48 million in 2007, its latest report to the Philippine SEC shows.
The company, which built the first galvanizing plant in the Philippines, said it has local loans amounting to P1.9 billion that represents long-term loans with Metrobank Trust Co. and which will mature in March 2013.
On the other hand, CPS posted a gross profit loss of $41,616 despite a 4.99-percent increase in revenue for the three months ended March 31.
The management pinned this to “demand uncertainties and increased cost of sales, [which] mainly increased raw material costs.”
