|
|
Establishing Joint Production Company for Forged Products in North America
NTN Corporation has established a joint venture with Asahi Forge, Co. Ltd. to produce forged parts for constant-velocity joints (CVJs) and hub bearings in the United States. This furthers NTN's local procurement strategies, responding to the increased production of CVJs and hub bearings in North America.
1. Aims of the joint venture
NTN aims to ensure stable procurement of high quality and cost-competitive forged parts to strengthen NTN's business foundation in North America. The decision was made in response to significant increase in the production of CVJs and hub bearings in North America.
2. Future Plans
The joint venture was established in October 2003 and plans are to start production in March 2004. Sales of approximately ¥3 billion are forecast for fiscal 2007.
3. New Company Details
| (1) | Company name: | Asahi Forge of America Corporation (AFA) |
| (2) | Business: | Production and sales of forged parts for bearings and automotive parts
(hub bearing parts and constant-velocity joint parts) |
| (3) | Capitalization: | US$6.1 million (approx. ¥700 million) |
| (4) | Capital participation: | Asahi Forge: 54.1%,
NTN USA (100%-owned subsidiary of NTN): 32.8%,
Other: 13.1% |
| (5) | Location: | Richmond, Kentucky, U.S.A. |
| (6) | Start of operation: | March 2004 (planned) |
| (7) | Site size: | 80,000 square meters |
| (8) | Floor area: | 4,700 square meters |
| (9) | Investment: | US$17 million (approx. ¥1.9 billion) |
| (10) | Employment plan: | Approx. 50 employees planned for fiscal 2007 |
4. Details of joint venture partner
| (1) | Company name: | Asahi Forge Co., Ltd. |
| (2) | Name of representative: | Shigemitsu Asahi, representative director |
| (3) | Business: | Forging, heat treatment, and machine processing for automotive parts, bearings, construction equipment parts, etc. |
| (4) | Capitalization: | ¥130 million |
| (5) | Location: | Nagoya-shi, Aichi |
| (6) | Annual turnover: | ¥10 billion |
| (7) | Employees: | 308 employees |
|
