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Financial Information:
Annual Report 2003
| Industry
Trends and NSK’s Global Alliances |
The global rolling bearing market is estimated at ¥2.6
trillion. In recent years the industry has undergone sig-nificant
changes, particularly among U.S. and European manufacturers. For
example, INA-Schaeffler KG of Germany acquired FAG Kugelfischer,
while The Timken Company, the largest bearing maker in the U.S.
and one of our business partners, merged with The Torrington Company,
also of the U.S. We have also seen the emergence of Chinese manufacturers,
mainly in the commodity bearings segment, illustrating the significant
changes taking place in terms of global competition.
 In
terms of the overall bearing industry, NSK joins the INA-FAG group
and the Timken-Torrington group in the second tier of players
after AB SKF of Sweden. NSK boasts the top share of the standard
ball bearing market, and has a 17% share of the automotive bearings
market, making it one of the top players along with Timken-Torrington
and SKF.
In automotive components, NSK occupies a leading position
in the global EPS market with a share of approximately 37%. In
steering columns we rank No. 2 globally behind Delphi Corporation
of the U.S. and No.1 domestically, while we hold the top position
both globally and domestically for steering joints.
In precision machinery and parts, NSK holds the top share
(25%) of the ball screw market. In the linear guide market, we
rank No.3 globally with a 13% market share after Japanese manufacturers
THK Co., Ltd. and Nippon Thompson Co., Ltd. (All figures are NSK’s
estimates)
| Growth
Strategy through Global Alliances |
|
In segments where we deem it difficult to maintain the No.
1 or No. 2 market positions globally, we are actively pursuing
alliances to strengthen our competitiveness.
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| NSK’s
Global Alliances |
| |
Product category |
Alliance partner |
Details |
| Automotive
bearings |
Tapered roller
bearings |
The Timken
Company
(U.S.) |
Tie-up
agreed in August 2001; will begin providing
parts and service to Toyota Motor Corporation
and affiliated companies from 2004.
Formed a joint venture in China that will
start production in early 2004. |
| Needle bearings |
The Torrington
Company (U.S.)* |
Formed
a joint venture in Japan and started domestic
production in 1963.
(Acquired Torrington's equity interest
in July 2003.)
Currently establishing local supply systems
to Japanese automakers that are expanding
their global production. |
| Automotive
components |
Automatic
transmission components (friction materials
and one-way clutches) |
BorgWarner
Inc.
(U.S.) |
Established
a joint venture in Japan and started production
in 1964. |
| Others |
Large-sized
bearings
etc |
NTN Corporation
(Japan) |
NTN began
supply of OEM ball bearing units to NSK
in 1999. Also agreed to share intellectual
property rights with regard to rolling
bearings.
Planning to establish a joint venture
sales company. |
|
* Torrington was acquired in February 2003
by Timken.
Transfer of our seat belt business
to Autoliv Inc. of Sweden was completed in April 2003.
Our European aerospace bearing operations will be
transferred to SKF in phases by April 2005.
Agreement was reached with NTN in April 2003 to acquire
their ball screw operations for general industrial
use. |
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