February 13, 2008
Establishment of joint venture for railroad bearings in China
This is to announce that NTN Corporation (hereafter NTN) and CSR Nanjing Puzhen Rolling Stock Works (hereafter CSR Nanjing Puzhen) signed an agreement on November 15, 2007 in Beijing, China to establish a joint venture company for production and sales of railroad bearings.
1.Purpose of the joint venture
| Rail service is rapidly developing in China and NTN will secure a production base for railroad bearings there. The joint venture company will produce and sell cylindrical roller bearings and their parts with CSR Nanjing Puzhen, part of the CSR group (Note 1) which has a close relationship with the Chinese Railroad Ministry. The joint venture company will supply high quality bearings to Chinese rail companies, by enhancing quality, cost and delivery incorporating NTN's technologies and CSR Nanjing Puzhen's production and sales capabilities. |
2.Schedule
| Production will start in 2008 and annual sales is expected to be approx. 700 million yen in the first year and approx. 1,200 million yen in 2012. |
3.Outline of the new company
| (1)Company name | : | Nanjing Puzhen NTN Railway Bearing Co., Ltd (Provisional name) |
| (2)Business scope | : | Production and sales of cylindrical roller bearings and their parts for railroad |
| (3)Capitalization | : | U.S. $ 6.6 million |
| (4)Investors | : | CSR Nanjing Puzhen Rolling Stock Works 60%, NTN (China) Investment Corporation 40% |
| (5)Location | : | No.5 Longhu Alley, Puzhen Town, Nanjing, China |
| (6)Establishment | : | December 2007 (Plan) |
| (7)Start of Operations | : | January 2008 (Plan) |
| (8)Site area | : | Approx. 9,000m2 |
| (9)Total floor space | : | Approx. 9,000m2 |
| (10)Sales target | : | Approx. 700 million yen in the first year |
| (11)Employees | : | Approx. 200 |
| (Note 1) | The enterprise was established in 2000 after China Locomotive & Rolling Stock Industry Corporation was separated and reorganized by the Chinese Ministry of Railway into CSR and CNR. It is a state-owned company directly controlled by the Chinese central government and is composed of 27 subsidiaries and affiliates for the production and sales of rail and related machinery. |
[ Reference]
NTN's main production bases in China
Photo of the signing ceremony on Nov. 15 in Beijing
