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Financial Information:
Annual Report 2005
Making
Further Headway in China
Once viewed primarily
as a manufacturing base for companies worldwide, China
is fast becoming an enormous consumer market.
China’s high rate of growth is expected
to continue through 2010, bringing with it the promise
of expansion in the automotive, infrastructure, aftermarket,
and electrical and IT equipment sectors. Competition is
likely to be intense, but NSK is fully prepared to meet
this challenge. |
The First
Steps
NSK’s connection to China dates back nearly
40 years, far earlier than rival bearing manufacturers. During
this time, we have built a relationship founded on trust by exporting
production equipment to Chinese enterprises, receiving visits
from Chinese officials, sponsoring training programs for Chinese
engineers, and other activities. The strength of this relationship
culminated in the establishment of Kunshan NSK Co., Ltd. in 1995,
our first production site in the country.
NSK views China as a long-term growth market, and
not just a low-cost production site. While keeping a hand on geopolitical
risks, we are promoting business with local companies, contributing
to local society through scholarship programs and encouraging
the localization of our operations through the transfer of technology
and authority to local staff. By doing so, we hope to be recognized
not as a foreign company operating in China but as a “home-grown”
company.
| Operations Network
in China |
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Developing
Local Operations in China
| Net Sales in China |
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From both a production and sales standpoint, NSK
views China as a region vital to its global expansion plans. In
2010, demand for bearings in China is projected to be worth ¥640
billion, approximately double that in 2003. For NSK, this growth
undoubtedly represents a major business opportunity.
At present, NSK has seven production sites in China,
with plans to establish a wholly owned sales subsidiary in 2005.
NSK will also expand its R&D center in China and further reduce
costs by adopting locally produced materials and components at
its procurement center in Shanghai. Through its newly introduced
personnel management system designed especially to match the characteristics
of Chinese business practices, NSK intends to attract and retain
talented Chinese employees who will be responsible for implementing
our initiatives in the market.
By improving quality, cost and customer service, NSK
is striving to further solidify its dominant position in China.
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