Lincoln Electric was founded in 1895 and today is the world leader in the design, development and manufacture of arc welding products, robotic welding systems, plasma and oxyfuel cutting equipment. Headquartered in Cleveland, Lincoln has manufacturing operations, joint ventures and alliances in 18 countries and a worldwide network of distributors and sales offices covering more than 160 countries. Lincoln employees global workforce totals approximately 7,000.

Recognized as the welding experts, Lincoln provides leading technology products and solutions. From its early beginnings, Lincoln pioneered technological advancements and improvements in arc welding consumables and equipment. Lincoln sustains the industry's most aggressive and comprehensive research and product development program. This effort is supported by the David C. Lincoln Technology Center, the most advanced facility of its kind.

Arc welding is indispensable to many industries. For example, the metal working field involves production arc welding in transportation, construction, fabrication, petrochemical and other industries. In the manufacture of metal products, arc welding applications range from producing consumer appliances to fabricating heavy machinery and structural steel. Arc welding is the dominant joining method for building and other industrial construction, including oil and gas pipeline fabrication, and oil refinery construction.

Lincoln is famous for its productive and highly-skilled work force, as well as its unique compensation system, Incentive Management.

Incentive Management is widely studied in business schools and industrial management circles. The system compensates and encourages individual and team initiative and responsibility at all levels of employment within the U.S. subsidiary. Lincoln's other global operations have their own systems, where appropriate and practical. Lincoln has never experienced a work stoppage in its 100-plus year history.

Lincoln’s vision is to be the leader in supplying the finest quality welding and cutting products. In order to accomplish this, Lincoln will continue its emphasis on being the industry lowest cost producer, on providing applications expertise and solutions for its customers, and on developing new and innovative technology that responds to customer needs with value-added products and services.

Lincoln divide its global operations as five regions: North America, Latin America, Europe, Asia and Russia, Africa, Middle East, over 40% of our total sales coming from outside North America. Lincoln Electric has its cost competitive manufacturing facilities located worldwide, where appropriate, to best serve its customers’ needs. Manufacturing Facilities locate at: United States, Canada, Mexico, Venezuela,

Brazil, Ireland, England, France, The Netherlands Poland, Germany, Italy, Spain, Turkey, Australia, China, Indonesia ,Taiwan, The Philippines.

About Lincoln’s Product

Lincoln Electric is one of only two global companies to market both welding equipment and consumables, Lincoln’s product cover Arc Welding Equipment, Arc Welding Consumables, Plasma and Oxy-Fuel Cutting Equipment.

Arc welding equipment include Power sources, Wire feeding systems, Robotic welding packages, Engine welders & generators.

Arc Welding Consumables are welding filler metals, it include Stick electrodes, MIG, Flux-Cored, Stainless Steel, Aluminum and Non-Ferrous wires, Submerged Arc Flux, Filler Wire.

Plasma and Oxy-Fuel Cutting Equipment Products includes: Regulators, Torches, etc.

About Lincoln’s Financial Performance

Lincoln Electric is a listed company in NASDAQ (symbol: LECO). Lincoln’s Net sales in 2002 increased 1.6 percent to $994 Million, from $979 million the previous year. Given the economic conditions of 2002, Lincoln reported favorable earnings and cash flows. Net income for 2002 was $29 million, compared with net income of $84 million in 2001. Excluding rationalization charges and the write-off goodwill, net income of 2002 would have been $74 million. Cash flow form operations in 2002 was strong at approximately $104 million, reflecting Lincoln’s solid operating performance and management of its working capital. More than 500,000 shares of Lincoln stock were repurchased during the year as part of Lincoln’s previously authorized 10 million-share buy-back program.

About Lincoln Electric China

Lincoln Electric has strengthened its position in China. Lincoln has been operational in China for over 18 years and its staffs are the most experienced and trained in welding field. Lincoln has open more branches during 2003 and have increased its distributor coverage to give customers the very best of service and stock availability. Lincoln’s name is well known to China welders who regard its range and quality of product as being far superior to any other competitor.

The Lincoln Electric representative offices in China are located in Shanghai and Beijing. A branch office is also located in Guangzhou. All of its foreign and local welding engineers have been through the company's extensive training program in the United States of America. Lincoln Electric is here to provide total solutions with welding problems and give support for all Lincoln products. Lincoln offers technical service and assistance regardless of where your Lincoln welding products are manufactured.

The Lincoln Electric (Shanghai) Trading & Warehousing Co., Ltd. is located in Shanghai's Wai Gao Qiao Free Trade Zone. Lincoln's modern welding training center is also located within this complex. The warehouse complex is a further example of Lincoln's commitment to the welding industry in China. The trading company has been established to strengthen the company's distributor network by providing a comprehensive range of stock and spare parts, shorten the delivery time from the placement of order, provide periodic technical training for distributors & customers and strengthen after sales service.

Lincoln Electric China’s welding training center is fully equipped with the latest in welding technology equipment. Lincoln Electric China has internationally trained personal standing by to provide demonstrations and training. Regular courses are run on a variety of subjects giving class room lectures and "hands on" sessions all year round. Tailor made courses have been put together to service the needs of customer demands. Lincoln Electric’s international lecturer and its internationally trained local staff have the "solution" that customers are looking for.

Recent growth in China operations was driven by the pipeline business that Lincoln Electric secured to supply welding equipment for the 4,000-kilometer West-To-East Pipeline Projects. This massive undertaking also presents enormous opportunities for additional sales, particularly to the Chinese pipe mills that will serve the project. At the same time, Kuang Tai, Lincoln Electric Taiwan-based joint venture partner, remains very competitive in China, recording growth of approximately 15 percentage per year.

Lincoln Electric Acquire Controlling Interests in Welding Equipment and Consumables Firms in China, as part of the acquisition, Lincoln will own an 85% share in a new welding equipment facility in China, plus direct majority ownership in two existing welding consumables businesses. The transaction is scheduled to close in the first quarter of 2004 and will be accretive immediately. This key transaction gives Lincoln  a viable platform of crucial equipment manufacturing capability in China with the added value of proven and experienced management already in country, as well as providing majority control of two sizable and important welding consumables businesses. The agreement also widens considerably Lincoln’s distribution network, branch office and warehousing by allowing Lincoln to utilize the installed Jin Tai infrastructure. This immediately broadens Lincoln’s available product scope and bodes well for its future growth in the China market.

About Lincoln Electric Sourcing in China

Sponsored by Lincoln Electric CEO, Lincoln Electric starts its Global sourcing initiates, including China sourcing strategies from 2002. Below 9 broad categories commodities represent 74% of $620 M global dollar spend from outside suppliers:  

–       Carbon Steel Wire (green rod)

–       Maintenance Repair & Operations

–       Logistics & Transportation

–       Chemicals

–       Welding Products for Resale (non-Lincoln)

–       Steel Mill Products (other than green rod)

–       Packaging Materials

–       Electronics

–       Engines & Engine Parts