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.
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
4. Partner in Joint Venture