Sat, Jul 03, 2004 - Page 10 News List

Piano maker in tune with rising Chinese middle class

A GRAND SCALE Pearl River is now the world's largest piano maker -- producing 280 instruments a day -- and 80 percent are destined for the Chinese market

REUTERS , GUANGZHOU

"I think profits will increase by 3 percent to 5 percent but it's very difficult to evaluate at the moment," Tong said.

Prices began rising in China last year after years of deflation. The firm has to buy strings, polyester and felt from overseas which Tong said is "very expensive."

The firm also grapples with power shortages which are plaguing China's rapidly growing economy. Since April, staff have taken off Friday and Saturday and worked on Sunday instead to conserve electricity.

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