Products of Kharkov Bearing Plant have been well-known to consumers for almost 60 years. Since launching of first production line experts of Kharkov Bearing Plant have always been working on quality products improvement understanding that it is a necessary condition of enterprise development. Though increasing enterprise competitiveness has its drawbacks. Unfortunately counterfeit of Kharkov Bearing Plant production has become very often lately. HARP bearings became attractive for those swindlers are well oriented in market situation taking into account the fact that HARP production is well known and is in demand.
    Therefore, elimination of this situation is task of top-priority in 2005. Laboratory of statistic research in Testing Center of JSC “HARP” analyzed a series of counterfeit marked that they were produced by Kharkov Bearing Plant. Thus, they had analyzed bearing 6305-2RS (with HARP marking on its sealing) presumably produced in China
When checking if the bearing (and its completing parts) had been produced by JSC “HARP” they stated the following:

• the bearing does not correspond to standardized accuracy class GOST 520-022 by the following parameters: deviation form average hole diameter, non-stability of diameter in unit space; deviation from unit width of inner ring; non-stability of outer ring width; radial run-out of inner and outer rings; axial run-out of inner and outer rings;
• ring and ball hardness is reduced and does not meet requirements of GOST 520-2002.
• outer and inner rings and balls are made of steel not stipulated by GOST 520-2002 and not applied on JSC “HARP” for producing bearing parts.

• radial run-out of inner ring and axial run-out of outer ring do not meet parameters stipulated in GOST 520-2002;
• radial clearance is equal to 36 µm whereas tolerable clearance is 14-34 µm;
• converged profile of outer and inner rings raceways does not meet established requirements;
• it was impossible to determine accuracy class because of non soluble film on their surface;
• balls were produced of steel ~ 10 – 20 that does not meet GOST3722 – 81;
• all facets of bearing under study are of radius-type, and HARP non-mounting facets are at angle 45°, facets also differ in color: the bearing under study has light-colored facets, whereas HARP bearing – dark ones;
• marking is applied by type print that differs from print used for marking at JSC “HARP”.

• bearing design (different position of non-mounting facets);
• geometry (outer and inner rings raceways radius is less than the one stated in design documentation of JSC “HARP”);
• material used (balls are made of steel ~ 10 – 20 that is not stipulated in GOST 3722-81);
• bearing marking (used type print differs from the one applied at JSC “HARP”).

    Experts of JSC “HARP” and its exclusive distributor “HARP Trading” will carry on work on detecting counterfeits and performing analysis for conformance to plant production. Besides, we would to remind our readers that starting from January 2004 HARP bearings of million group and double-row bearing for retailing on CIS territory are sold by manufacturer only in individual packing.

    Сonsumers should not forget that HARP bearing, as well as double-row bearings and bearings of million group should have marking on outer ring – HARP and designation of corresponding nomenclature.
And one more thing. Cheap bearing production of foreign manufacturers appeared on our market and in some cases it coincides with nomenclature of JSC “HARP”. Experts from JSC “HARP” got interested in its quality and studied bearings 6305ZZ, 6203ZZ, 6203 for conformance to GOST 520-2002 requirements: they measured basic dimensions, geometric accuracy, precision of rotation, radial clearance and determined ring and ball hardness and analyzed metal.
    The analysis results showed that none of the bearings corresponds to accuracy class «8» GOST 520-2002, to say nothing of standard accuracy class. Ring and ball hardness was reduced and did not meet requirements GOST 520-2002. Outer, inner rings and balls are made of steel that is not stipulated by this standard. Experts from Laboratory of statistic research concluded that such bearings couldn’t be used in technical articles, even in those articles that do not require precise rotation.
   Remember that mounting counterfeit or low quality bearings as well as those bearing that we have considered can lead to complete equipment failure. Cost savings with cheap bearings will be much less than expense for acquisition of new equipment. Do not take risk, only competent manufacturers can guarantee product quality.

    The joint-stock commercial bank “Ukrsotsbank”, the leading manager and payment loan agent, has placed the bonds of “HARP Trading” LTD in full volume for the sum of 10 million UAH. The buyers of the bonds are Ukrainian banks and financial companies. On the 1st of August “HARP Trading” LTD started to place bonds with a half-yearly offer and quarterly payment of interest. The annual yield is 18% for the first two coupon periods. The retirement of bonds is the 29th of July 2007. For the first six months of the current year “HARP Trading” LTD received 6.1 million UAH of clear profit and clear sale income is 49.56 million UAH. The gross profitability according to the results of the work is 19.1%.

     Investment activities of “HARP” LTD is carried out together with JSC “HARP”.
We would like to remind everybody that since December 2001 the investment project “Enterprise modernization for the purpose of manufacturing of improved quality bearings” is being implemented at the Kharkov Bearing Plant. The total cost of the mentioned project is 26, 924 million UAH . The aim of the project is to produce bearings of higher class with the regulated noise and vibration level. The finances received from the selling of bonds will be directed at the enlargement of the manufacturing process of JSC “Kharkov Bearing Plant” bearing products. The funds are planned to be shared in the following way: modernization of the equipment – 5000 thousands UAH, project work on the investment objects – 500 thousands UAH, acquisition and mounting of new equipment – 3500 thousands UAH, acquisition and reconstruction of premises for the objects of the investment project – 1000 thousands UAH.

    Payment of interest income on bonds will be carried out by “Ukrsotsbank” in national currency on the basis of consolidated account register of the bond owners. Payment of interest income to the owner - juridical person will be carried out to its current account. The bond interest is added according to the interest periods. Each interest period is 91 calendar days. Payment of interest income is arranged for 12 times a working day when the correspondent interest period is over.

The interest income for the periods 1-11 is paid at the end of the correspondent period, the latest income payment and other project details can be found in the bulletin “Tsinni papery Ukrayiny” (Important documents of Ukraine) from the 21st of July.