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Establishment of a Joint Venture Company in China
to manufacture and sell Constant Velocity Joints
NTN Corporation (“NTN”) has decided to establish a joint venture company (“JV”) in Guangzhou, Guangdong Province, People's Republic of China to manufacture and sell Constant Velocity Joints (“CVJs”) under the partnership with Yulon Group.
1. Purpose for establishment of the JV
NTN has decided to establish the JV to manufacture and sell CVJ with Yulon Group that is conducting various businesses in China including its automobile companies such as South East Motor, Feng Shen Motor, etc. The JV's advantages shall be realized by combining the strengths of both parties such as NTN's expertise in CVJ technology and Yulon Group's expertise in the operation in China. The JV is expected to grow as the important base of CVJ business in Chinese market by continuously keeping up with the market trend and pursuing the further improved customer service.
2. Further Schedule
The JV will be established at the beginning of October 2002, and its Start Of Production is scheduled on June 2003. Its Sales of CVJs is forecasted to be approximately 1 billion yen in 2003 and 3.5 billion yen in 2005.
3. Outline of the JV (Plan)
| 1) Company Name: |
GUANGZHOU NTN-YULON DRIVETRAIN CO., LTD. |
| 2) Business Objectives: |
Manufacture and sell CVJs |
| 3) Registered Capital: |
10 million US$ |
| 4) Shareholding Ratio: |
NTN 60% Yulon Group 40% |
| 5) Location: |
Guangzhou Economic and Technological Development Zone,
Guangzhou, Guangdong Province, People's Republic of China |
| 6) Date of Establishment: |
Beginning of October 2002 (planned) |
| 7) Start Of Production: |
June 2003 (planned) |
| 8) Site Area: |
52 thousand m2 |
| 9) Plant Area: |
4 thousand m2 |
| 10) Investment: |
14 million US$ |
| 11) Sales Forecast: |
1 billion yen in 2003
3.5billion yen in 2005 |
| 12) Employees: |
70 Employees in 2003
150 Employees in 2005 |
4. Brief Explanation of Yulon Group
| 1) Annual Sales: |
190 billion NT$ (Approximately 700billion yen) |
| 2) Head Office: |
Taipei, Taiwan |
| 3) History: |
1951 Tai Yuen Textiles Co., Ltd. was founded
1953 Yulon Motor Co., Ltd. was founded
1969 China Motor Corp. was founded |
| 4) Main Businesses: |
Automobile Business, Automobile Parts Business,
Textiles Business, Financial and Investment Business
Hi-Technology Business, Real Estate Business |
| 5) Automobile and its Parts Business: |
Yulon Group has the automobile businesses such as Yulon Motor and China Motor, and also has the automobile parts businesses such as ROC-Spicer and Kian Shen in Taiwan. Yulon is also the shareholder as well as NTN of Taiway to manufacture and sell CVJ
Through these companies Yulon Group has been expanding its businesses in China such as South East Motor, Feng Shen Motor, Fujian Spicer, and Shenyang Spicer, etc. |
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