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Establishing Joint Production Company for Turning and Heat Treating in North America
As the production of constant-velocity joints (CVJs) and hubs bearings in the United States significantly increases, NTN Corporation has established a joint venture to produce CVJ and hub bearing components in the United States to strengthen local procurement.
1. Aims of the establishment of the joint venture
The new company is a three-way joint venture with Takao Manufacturing Co., Ltd. (with which NTN does business in Japan), and with Neturen Co., Ltd. NTN aims to ensure stable procurement of high quality, cost-competitive turned and heat-treated parts to strengthen NTN's business base in North America. The decision was made in response to a 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 August 2004. Sales of approximately ¥5 billion are forecast for fiscal 2007.
3. New Company Details
| (1) | Company name: | NTK Precision Axle Corporation |
| (2) | Business: | Turning and heat treat for CVJs and hub bearings |
| (3) | Capitalization: | US$10 million (approx. ¥1.1 billion) |
| (4) | Capital participation: | NTN USA (100%-owned subsidiary of NTN): 60%,
Takao Manufacturing Co., Ltd.: 20%,
Neturen U.S.A., Inc. (100%-owned subsidiary of Neturen): 20% |
| (5) | Location: | Frankfort, Indiana, U.S.A. |
| (6) | Start of operation: | August 2004 (planned) |
| (7) | Site size: | 70,000 square meters (planned) |
| (8) | Floor area: | 20,000 square meters (planned) |
| (9) | Investment: | Approx. US$50 million (approx. ¥5.5 billion) |
| (10) | Employees: | Approx. 110 employees planned for fiscal 2007 |
4. Partners in joint venture
1) Takao Manufacturing Co., Ltd.
| (1) | Name of representative: | Yoshihisa Shimomura, representative director and president |
| (2) | Business: | Turning and heat treat for automotive parts |
| (3) | Capitalization: | ¥30 million |
| (4) | Location
(Headquarters plant): | Yatomi-cho, Ama-gun, Aichi Prefecture |
| (5) | Annual turnover: | ¥2.3 billion |
| (6) | Employees: | 203 employees |
2) Neturen, Co. Ltd.
| (1) | Name of representative: | Eiji Yamashita, Representative Director and President |
| (2) | Business: | Contracted heat treatment processing using induction heating and machine processing |
| (3) | Capitalization: | ¥5.423 billion |
| (4) | Location: | 2-17-1 Higashi-Gotanda, Shinagawa-ku, Tokyo |
| (5) | Annual turnover: | ¥25.180 billion |
| (6) | Employees: | 626 employees |
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