June 10, 2010
NTN Establishes CVJ Production Base in Brazil
Production of CVJ s to Begin in June 2011
NTN Corporation (hereafter, NTN) has decided to purchase the assets of tedrive Sistemas de Chassis do Brasil Ltda. (hereafter, tedrive Brasil), the Brazilian subsidiary of tedrive Holding B.V., and establish a new company to manufacture and sell constant-velocity joints (hereafter, CVJs) to meet the rising demand for automobiles in Brazil.
1. Purpose of establishing the new company
NTN is accelerating the expansion of its business in emerging nations that include China, India, and Brazil as one of the key tasks emphasized in the company's medium-term management plan, “NTN 2010 for The Next Step.” Demand for automobiles is expected to rise sharply in Brazil, so local production of CVJs−a key automotive component−is of vital importance.
tedrive Brasil has been manufacturing and selling CVJs and steering systems in Brazil since 1997. NTN will purchase only its CVJ business assets and will establish a new company. By taking over existing assets that include land, buildings, equipment, and employees, NTN will be able to start local production more quickly than by building a new plant. NTN's goal is to quickly expand its CVJ business in Brazil.
NTN plans to strengthen its manufacturing and sales organization in South America, with a focus on Brazil, to boost its competitiveness globally with the aim of capturing the top share of the global market for CVJs. This new location in Brazil will be NTN's 18th CVJ production base, joining locations in Japan, the United States, Europe, Asia, and China.
2. Future plans
The new company will be established in June 2010 and production is scheduled to begin in June 2011, with a goal five years ahead in fiscal 2015 of sales totaling approximately 7 billion yen.
3. Outline of the new company
| (1)Company name |
NTN do Brasil Produção de Semi-Eixos Ltda. (provisional) (NTN of Brazil Production of Driveshaft) |
| (2)Line of Business | Manufacture and sales of constant-velocity joints (CVJs) |
| (3)Paid-in capital | Approx. 1.7 billion yen |
| (4)Ownership | NTN: 70%; NTE (NTN Transmissions Europe): 30% |
| (5)Location | Guarulhos, São Paulo, Brazil |
| (6)Establishment | June 2010 (provisional) |
| (7)Sales plan | Approx. 2.0 billion yen in fiscal 2011; approx. 7.0 billion yen in fiscal 2015 |
| (8)Employees | Approx. 100 at the start provisionally |
The plant of tedrive Brasil
[Reference]
NTN CVJ (finished product and parts) Production Bases
CVJs manufactured and sold by NTN
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A CVJ is a part that transmits the power of an automobile engine's rotation smoothly and constantly to the vehicle's tires, and is always used in front-wheel drive and four-wheel drive vehicles. The CVJ is a key part that greatly affects a vehicle's fuel consumption and the quietness and comfort of the ride. These aspects of automotive performance are constantly in high demand. In addition to automobile driveshafts, CVJs are also widely used for propeller shafts and steering shafts. |
[Inquiries about this release]
| NTN Corporation |
| Corporate Communications Department |
| TEL: | +81-6-6449-3579 |
| FAX: | +81-6-6443-3226 |
