November 6, 2003
Joint Company for the Production and Sales of Automotive Bearings in China
NTN Corporation and Changzhou Guangyang Bearing Co., Ltd. of China have signed a basic agreement to study specific issues toward the establishment of a joint company for the production and sales of needle roller bearings and other automotive bearings.
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Mr. Cheng Shangnan (left), Chairman of Changzhou Guangyang, and Suzuki, President of NTN |
1. Aims of the joint venture
The fusion of NTN's technological prowess and Changzhou Guangyang's business experience in the Chinese private sector will enhance NTN's competitiveness in cost, quality, delivery, service, and other areas, and build a firm foundation for the production of automotive bearings in China. This joint venture will produce and sell needle roller bearings, clutch release bearings, cylindrical roller bearings and other parts for automobiles, for which demand in China is forecast to expand. NTN will expand automotive bearing operations in China to meet the need for local procurement by rapidly expanding automotive manufacturers in China. With enhanced quality and competitiveness of automotive bearings, the joint venture will be utilized as a base for supplying bearings to the world as well. The joint venture will also establish an engineering center for product design, research and development to respond to Chinese automotive manufacturers' needs, supporting the expansion of sales through new technology and product development.
2. Future Plans
The target for establishing the venture is February 2004. The sales target for the first fiscal year is ¥5 billion and the aim is for sales of ¥10 billion in three years.
3. New Company Details
| (1) | Company name: | Changzhou NTN Corporation (tentative name) |
| (2) | Business: | Production and sales of needle roller bearings, clutch release bearings, cylindrical roller bearings, and other products |
| (3) | Capital contribution: | NTN 51%, Changzhou Guangyang 49% |
| (4) | Location: | Changzhou City, Jiangsu Province, China |
4. Partner in Joint Venture
| (1) | Company name: | Changzhou Guangyang Bearing Co., Ltd. |
| (2) | Business: | Production and sales of automotive bearings |
| (3) | Operations: | Automotive needle roller bearing, clutch release bearing, cylindrical roller bearing, and other automotive bearing and part production and sales |
| (4) | Location: | Changzhou City, Jiangsu Province, China |
| (5) | Annual turnover: | 200 million yuan (approx. ¥3 billion) |
| (6) | Employees: | 650 |
| (7) | Company history | |
| Changzhou Needle Bearing Plant was founded in December 1987 and began production of needle roller bearings. In 1992 it commenced the manufacture and sale of cylindrical roller bearings. Changzhou Guangyang Bearing Co., Ltd., was established in January 1994 and in 1996 began the manufacture and sales of clutch release bearings. | ||