March 18, 2003
A Nationwide Full-service Bearing Distribution Company to be Established
NTN Corporation will establish a nationwide full-service bearing distribution company. NTN Bearing Service Co., Ltd. will start operations in April 2003. Higashinihon NTN Service Corporation, a wholly owned subsidiary with bases in the Tohoku district and Hokkaido, has recently absorbed Kyushu NTN Corporation, based in Kyushu, and at the same time, taken over the business of Osaka NTN Pillow Center Corporation, a company based in the Kansai district. The combined company is renamed NTN Bearing Service Co., Ltd. This move is in line with a structural reform plan, "NEW Plan 21", which sets the goals of reinforcing NTN's business foundation. The company expects that growth in distributor size through the reorganization will enhance NTN's overall sales capabilities.
With the startup of the new company, NTN Bearing Service Co., Ltd. can offer uniform service and swift response to customer needs throughout Japan. For example, the company will introduce a nationwide Internet service through which inventory information can be shared with customers and customers can place orders. This will improve customer service and move NTN towards a dominant market positions. Integration of services will also streamline business processes.
The combined annual sales of the three companies before the integration are about ¥4 billion. NTN expects annual sales to rise 50% to ¥6 billion after three years. This means that the company will be in the top class in size as a bearing distribution company whose main customers are domestic trading houses dealing with bearings and machinery.
[Outline of the new company]