NTN to Establish New FDB Unit Production Joint Venture in Thailand with Nidec
NTN Corporation (NTN) will establish a new joint venture production company in Thailand with Nidec Corporation (Nidec), to manufacture fluid dynamic bearing (FDB) units for use on hard disc drives (HDD).
The market for HDDs has expanded in computers, consumer electronics and other fields, with HDD-related manufacturing companies beefing up production capacities in Thailand and other ASEAN countries. NTN and Nidec are currently manufacturing FDB units for use in 3.5-inch HDDs at a joint venture in China, NTN-Nidec (Zhejiang) Corporation (NNSC). Aiming to further expand their venture, the two companies recently decided to establish a new FDB unit production base in Thailand, a location near the major markets.
NTN manufactures “oil-impregnated sintered alloy” bearings (BEARPHITE®), a core component in FDB units, at its wholly owned subsidiary, NTN Manufacturing (Thailand) Co., Ltd. While the BEARPHITE® bearings built there have been shipped to China for assembly at NNSC, the launch of the new JV will make it possible to assemble FDB units in Thailand as well.
The new company will be established in November 2005 in the Eastern Seaboard Industrial Estate in Thailand's Rayong Province. Production there is slated to begin in June 2006, with monthly output steadily expanding to reach the 9- to 10-million-unit volume in fiscal 2009. Combined with NNSC, aggregate production capacity will climb to 15-16 million units monthly. Both NTN and Nidec intend to expand their FDB unit business using the distinctive “oil-impregnated sintered alloy” bearings as a core component.
Profile of New Joint Venture
| (1) |
Company name |
NTN-Nidec (Thailand) Corporation (proposed name) |
| (2) |
Business |
Production and sales of HDD-use FDB units |
| (3) |
Capitalization |
Approx. 1.5 billion yen (planned) |
| (4) |
Investment ratio |
NTN 60%, Nidec 40% |
| (5) |
Location |
Eastern Seaboard Industrial Estate, Rayong Province, Thailand |
| (6) |
Establishment |
November 2005 (planned) |
| (7) |
Operations startup |
June 2006 (planned) |
| (8) |
Site area |
Approx. 21,350m2 (planned) |
| (9) |
Total floor space |
Approx. 11,280m2 (planned) |
| (10) |
Investment |
Approx. 3 billion yen (planned) |
| (11) |
Monthly production plan |
3 million units in fiscal 2006, steady expansion to 6 million units by fiscal 2008. |
| (12) |
Employees |
Scheduled to hire approx. 1,300 people to support monthly output of 6-million units. |
[photo] 3.5-inch HDD-use FDB unit products to be built by the new company
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[Features of FDB units]
Use of oil-impregnated sintered alloy bearings (BEARPHITE®) as the core component, in a product with premier quality and reliability, furnishing high precision and low cost.
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[NTN FDB Business Production Base Map]
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