Recently, the Chinese Government have taken a tight-money policy because they are worried about
overheating the Chinese Market.
It is said that the steel, aluminum, cement and land development industries will be affected and 
will be taking a downturn by this policy.
Most of the construction machinery makers think that even if investments in those four 
industries will take a downturn, growth can still be expected because there are 
many infrastructure projects (public investments) in China. 
But, I think we have to watch the trend very carefully.

We, Yamashin, opened a new office in Shanghai on June 1st. 2004.
Before, our activities in China were carried out by Japanese staff from Japan.
But from now on, we can concentrate on our business in China through our Shanghai office.
For the time being, our Shanghai office will support our purchasing and sales activities.
However, in the near future, it will be extended to a trading or manufacturing company.

When I visited Mr. Hoshino, Chairman of the Board of Komatsu China Ltd., informing him 
of Yamashin's Shanghai Office, he told me about the Ground Positioning System (GPS) that are 
equipped on all Komatsu excavator machines in China.
I could not to understand the meaning of this GPS equipment, so I asked him for more information
about the system. He introduced me to an engineer who is in charge of the system.

Yes, GPS is a very interesting system !
As a matter of fact, they not only know the present position of every machine in China, 
but also the transportation history of the machine.
Granted if the payment is stopped, Komatsu can easily secure the machine wherever in China.
Furthermore, they can know the fuel meter of the machine, water temperature, 
hydraulic oil temperature, oil pressure gauge, ... etc. and the history of each data in real time.
This system makes it possible not only for prompt measures of machine accidents, 
but also to forecast machine troubles and malfunctions.

I believe the applications of information and communication technology makes our business
more and more interesting and exciting.
We, Yamashin, are now getting ready for our "Customer Support System" that makes it possible
to provide our customers, very useful and beneficial informations about filters.
In the near future, I will introduce an outline of this system.

Our motto of this year is "Quick Response to Your Needs."
I hope for your continued patronage and support for the Yamashin Filter Group.
Thank you.