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HOME | Investors | Presentation | Financial Conference for the Results of the First Half of Fiscal 2002

Progress report on the 2nd Phase of the
“NSK Business Restructuring Program”

 
 
 Progress summary of the 2nd phase of the “NSK Business Restructuring Program”
 
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  Current status Future developments
1. Domestic wage and employment reforms
·End of Sep. ’02 ¥-6.9 billion
·End of Mar. ’03 ¥-7.6 billion
Achieve the targeted 10% reduction
· Review current wage and employment structure
Reduce ¥10.0 billion in labor costs
2.Reduce external procurement costs
·End of Sep. ’02
 : ¥-1.5 billion
End of Mar. ’03: ¥-4.6 billion (forecast)
·End of Mar. ’05

: ¥15.0 billion (Initial plan)
Reduce further to ¥18.0 billion
Expand cost reduction activities to overseas affiliates and further reduce procurement costs
3.Restructure of European business

 ·Streamline production bases
 Closure of the Blackburn plant and consolidation of the steering column plants
·Personnel reduction
 End of Jun. ’02: Reduction of 830 employees
 End of Dec. ’02: Reduction of 1,380 employees
Return to profits in FY 2003 through the further reduction of personnel.
4.Reinforcement of business management and profit responsibilities
 ·Spin off of the steering column and precision machinery and parts business (Oct. ’02)
Transfer of personnel from the parent company to subsidiaries and further reduction of personnel
5.Reorganize domestic production systems
 ·Withdrawal from the CVJ business (Mar. ’03)
·Reorganization of bearings production plants
 NSK Fukushima Jakarta (final phase)
 Ohtsu, Ishibe and Fujisawa plants NSK Fukushima (Complete, except for machining processes)

 I would like to go into the current status of the European structural reforms.
The structural reforms in Europe are proceeding according to plan. These includes streamlining of production bases, such as the closure of the Blackburn plant, consolidation of the steering column plants, and downsizing of the European Technology Center. We have also stopped manufacture of non-core products, while the production transfer from the Peterlee plant (U.K.) to Iskra plant (Poland) is proceeding according to schedule.
 As of the end of June, our European workforce was reduced by 830 individuals, with an additional 550 expected to leave by the end of December bringing expected total personnel reductions to 1,380 individuals.
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