PUMP INDUSTRY

ANALYST
CHINESE CONCRETE PUMP MAKER PLANS LONDON LISTING
Jarlway Holdings plc, the holding company for Jarlway Machinery Inc, intends to float on the Alternative Investment Market (AIM) of the London Stock Exchange next month. One of China’s largest concrete pump manufacturers, Jarlway is hoping to raise £5 million–£8 million and have a market capitalization of approximately £22 million. Jarlway assembles and sells concrete pumping equipment from a Guangzhou base, mainly for the construction industry in China. The company’s product range includes trailer concrete pumps, truck mounted concrete line pumps, mobility concrete boom pumps and concrete mixing stations. According to Jarlway, the products are assembled under processes that have been certified to standards similar to ISO 9001. In 2004 the Chinese concrete pump company generated pre-tax profits of £1.4 million on net sales of £6.4 million. Jarlway’s products are sold and serviced through its 27 sales offices located throughout China. The company has also exported its products to North America and Algeria. The directors of the company estimate that Jarlway currently has a domestic market share of approximately 8%, behind the two market leaders who together account for approximately 30% of the market. Jarlway says that its products have been widely used in construction projects throughout China. In Shanghai, for example, Jarlway trailer pumps were used in the construction of the 31km Donghai Bridge. Jarlway concrete pumps were also used for the sealing of the top floor of the super-structure for the Ganghui Plaza. Jarlway believes that large scale infrastructure and urban development projects such as the 2008 Beijing Olympic Games, the 2010 Guangzhou Asian Games and the 2010 Shanghai World Expo will continue to drive consumption of concrete and the use of concrete machinery over the next few years. Jarlway is one of the first Chinese industrial companies to float on AIM. The AIM section of the London Stock Exchange gives companies from all countries and sectors access to the market at an earlier stage of their development, allowing them to experience life as a public company. Since AIM opened in 1995, more than 1300 companies have been admitted and more than £11 billion has been raised collectively. Zimmerman Adams International Ltd is acting as the lead agent for the proposed placing of securities, while Nabarro Wells & Co Ltd has been appointed as the nominated adviser and broker. For further information on Jarlway, visit www.jarlway.com. MAY 2005 ISSN 1359-6128 www.worldpumps.com

UK FIRE HITS WEIR PUMPS SALES
A March fire in the test shop at Weir Pumps in Cathcart, Scotland will delay £5.0 million of sales and £2.0 million of contribution for the company. However Weir expects to recover these sales and contribution in the second half of the year. Speaking at this year’s Annual General Meeting, Weir Group chairman, Sir Robert Smith, said that the level of orders booked in the first quarter had continued at a satisfactory rate - slightly below an exceptionally high first quarter in 2004. Within the Engineering Products businesses, Weir says that its new order level continues to support its confidence in an improving profit performance in the second half of the year. First half results will be affected by the previously announced restructuring in Valves and Clear Liquid’s UK operations, which Smith said were currently proceeding to approved budgets and schedules (see Pump Industry Analyst, March 2005). Despite work in Iraq being delayed by security and government transition issues, the Services Division has continued to experience good rates of enquiries and is still expected to make progress in 2005.

NEWS

COMMENT
Jarlway’s decision to come to London with an initial public offering is a bold move by the Chinese pump maker. All eyes will be on Jarlway next month as the company blazes a trail for fellow Chinese industrials and possibly other pump manufacturers. s

CONTENTS CALENDAR 13 COMPANY PROFILE 5–6 COMPANY WATCH 7–9 DIARY 15 DIVIDENDS 11 ECONOMIC REVIEW 14 FINANCIALS 10 IN BRIEF 11,12,13 MARKET PROSPECTS 2–4 NEWS 1,12,13,16 NPD 14 ORDERS 11 PEOPLE 10 STOCK WATCH 15
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