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New Subsidiary to be Established in China
NTN Corporation (NTN) has decided to establish a 95%-owned joint venture
subsidiary in Shanghai, China with Okaya & Co., Ltd. (Okaya) for the
production and sales of constant-velocity joint components and bearings.
1.
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Background and Aims of the Project
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In its business restructuring plan started this April, NTN announced
that it will concentrate business resources in strategic products
-- constant-velocity joints, axle units, and needle roller bearings.
NTN will also advance operations in China for finished parts and components
. In accordance with these plans, NTN has decided to establish this
joint venture -- its first production base in China.
NTN aims to strengthen its presence in the steadily growing automotive
market in China and to gain global competitiveness for its strategic
products. With China positioned as an optimum production location,
the joint venture is expected to become a supply base to export strategic
products, partially-processed products, and their parts to other NTN
production bases in Japan, America, Europe, and the rest of Asia.
Approximately 90% of all production (including both finished products
and parts, but primarily constant-velocity joint parts or “CVJ
cassettes”) will be exported. |
2.
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Future Plans
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Plans are to formally establish the unit in the middle of August.
Investment of approximately JPY600 million will fund plant construction
and production of CVJ cassettes, axle units, and needle roller bearings
will commence in June 2003.
It is anticipated that the sales will be approximately ¥400 million for the first year,2003,with a forecast of approximately ¥3 billion in 2005.
NTN is studying the possibility of initiating integrated manufacturing
(from pre-processing to finished product) for ball bearings and tapered
roller bearings as well. |
3.
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Outline of the New Company
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| 1) |
Name of the New Company: |
(Provisional name) Shanghai NTN Corporation |
| 2) |
Business: |
Manufacture, processing, and sales of bearings, automobile
parts, machine parts, and related parts such as CVJ cassettes,
axle units, and needle roller bearings. |
| 3) |
Authorized Capital: |
US$20 million (approximately JPY2.5 billion) |
| 4) |
Capital Participation: |
95% NTN, 5% Okaya & Co., Ltd. |
| 5) |
Location: |
Songjiang District, Shanghai, People's Republic of China |
| 6) |
Date of Establishment: |
Mid-August 2002 (planned) |
| 7) |
Start of Operations: |
June 2003 (planned) |
| 8) |
Site Size: |
About 250,000 square meters |
| 9) |
Total Floor Area: |
In the first phase, a plant of 15,000 square meters and a
administration building of 2,000 square meters (total: 17,000
square meters) will be constructed. |
| 10) |
Investment Amount: |
$29.9 million (approximately JPY3.7 billion) with an estimated
initial investment of approximately JPY2.2 billion. |
| 11) |
Sales Plans: |
Approximately JPY400 million for the first year, with a forecast
of JPY3 billion in 2005 |
| 12) |
Projected Employment: |
Initially about 100 persons; increasing to approximately 300
persons in 2005 |
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