Flender/Flender Gear Units/Bevel-helical gear units B3
oreign subsidiaries in order to penetrate .. and Brazilian markets and purchased West German industrial gearing firm. 1 .. industrial

gearing manufacturers that produce standard line of gear products sell through distributors and, therefore, do not have an extensive sales

and technical support staff. 1 USITC staff interviews with BGA and gear industry officials, the United Kingdom, November 1. VDMA

written response to USITC staff questions, Dec. 1, 1, . 2. USITC staff interviews with gear industry officials, Japan and

Korea, December 1. 7-4 Generally, .. producers require that the distributors purchase and maintain product inventory. In contrast, major foreign industrial gearing producers serve the North American market primarily through direct sales forces that focus on OEM customers. Distributors are sometimes used, but the modular product offered by some European producers requires significant level of technical expertise in the seller and does not make suitable stock product. 2 Producers such as Hansen International, Flender, Leroy-Somer, 2 and SEW-Eurodrive have established manufacturing and assembly centers across the United States and Canada to supply these markets and offer better customer service. Sumitomo established large assembly center and has subassembly and service centers across the United States for its gear and cycloidal speed reducer products. 2 Sumitomo uses both distributors and direct sales force in the .. market. .. distributors responding to the Commission' questionnaire indicated that the main reasons for selling ..-assembled foreign brand products included filling out the distributors' product line, price, and customer preferences. The principal reasons given for selling ..-produced industrial gearing were product availability, customer preference, and quality, whereas the main SEW-Eurodrive, Inc., posthearing brief, Nov. 1, 1, . 4. ' ee Acquired jSC stabfrinteervi Emerson Elect