2014

NTN Corporation (hereafter, NTN) has decided to establish the “Xiangyang NTN-Yulon Drivetrain Co., Ltd. (hereafter, Xiangyang NTN)” joint venture in Xiangyang, Hubei Province, China, with the Yulon Group in Taiwan, as the third plant for the production of CVJ.

1. Purpose of establishing the new company

NTN has been reorganizing its global production system as part of the two-year mid-term management plant “Revival 2014” that began in April 2013 with the aim of “reforming business structure to generate profit.”

Based on the ‘on local site with local materials by local personnel’ concept, NTN is expanding production overseas that are experiencing increased demand, and increasing the local procurement rate, with the aim of establishing a production system that is not easily affected by exchange rates.

Demand for NTN's CVJ has increased immensely with the enormous increase in automobile production figures in China. NTN has been increasing production of CVJ with the “Guangzhou NTN-Yulon Drivetrain Co., Ltd.” joint venture established in 2002 with the Yulon Group and “Beijin NTN-Seohan Driveshaft Co., Ltd.” established in 2003. A decision was made to establish a third production plant as these two plants are operating at full capacity, and there is no spare space for expansion.

Xiangyang NTN will be a joint venture with Kian Shen Corporation that is part of the Yulon Group that has more than 10 years of experience in joint enterprise. The company will be established in Xiangyang, Hubei Province, which is located inland and is an excellent source of skilled labor, to supply CVJ to global car manufacturers that produce automobiles in China.

2. Future plans

Production at Xiangyang NTN is planned to begin in April 2015.

The new company will start operating with approximately 300 employees, with plans for the gradual expansion to 500 employees by FY2017.

Sales of 14 billion yen are planned by FY2017.

3. Overview of the new company

(1)	Company Name	Xiangyang NTN-Yulon Drivetrain Co., Ltd.
(2)	Line of Business	Manufacture and sales of CVJ
(3)	Location	Economic and Technological Development Zone, Xiangyang City, Hubei, China	Completed image of Xiangyang NTN
(4)	Capital	USD 34 million
(5)	Investment ratio	NTN (China) Investment Corporation 60% Kian Shen Investment Hong Kong Co., Ltd. 40%
(6)	Site area	Approximately 133,000 m2
(7)	Total floor area	Approximately 24,000 m2
(8)	Employees	Approximately 500 (planned)

[ Reference ]

About CVJ

A CVJ is a part that transmits the power of an automobile engine's rotation smoothly and constantly to the vehicle's tires, and is always used in front-wheel drive and four-wheel drive vehicles. The CVJ is a key part that greatly affects a vehicle's fuel consumption and the quietness and comfort of the ride. These aspects of automotive performance are constantly in high demand. In addition to automobile driveshafts, CVJs are also widely used for propeller shafts and steering shafts.

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