Tokyo, Japan, February 15, 2008 - NSK Ltd. (NSK; Headquarter: Tokyo, Japan; President and CEO: Seiichi Asaka) and ABC Bearings Limited (ABC; Headquarter: Mumbai, India; Managing Director: Pradip Patel) are pleased to announce the completion and official opening ceremony on February 15th of their joint venture bearing plant located on the outskirts of Chennai City. The new plant in Chennai, a central industrial city in Southern India, will manufacture bearings for the automotive industry, targeting supply to both Japanese and local automotive manufacturers, as well as other foreign-owned companies located in India.
ABC and NSK have maintained a good relationship since 1998, with NSK providing technical support for bearing production. Against a background of rapid economic growth in India, both companies decided to form the JV Company in order to produce bearings to meet the growing demands of the automotive industry. For NSK, this joint venture is an opportunity to increase sales to Japanese and foreign automotive manufacturers in India. For ABC, the plant offers new opportunities to increase sales to their existing customers by providing a greater range of bearing types.
The profile of the JV Company is as follows:
| Company Name |
NSK-ABC Bearings Ltd. |
| Capital |
500 million Rupees (1.3 billion Yen) |
| Ratio of Capital Contribution |
NSK:75%, ABC:25% |
| Location |
SIPCOT Industrial Park,
Kancheepuram District, Tamil Nadu, India
(located in a suburb of Chennai) |
| Land Area |
80,000 square meters |
| Building Area |
7,000 square meters |
| Business Plan |
Production of bearings (HUB unit bearings, bearings for transmission, bearings for magnetic clutches, etc.) |
| Investment |
- 500 million Rupees (1.3 billion Yen) for the initial stage.
- 800 million Rupees (2.0 billion Yen) by the year 2010. |
Guests and related parties attend the opening ceremony
About NSK:
NSK inaugurated its business in 1916 and produced the first ball bearings made in Japan. Since then, NSK has developed a full range of bearings, which have been sold throughout the world, and has contributed greatly to the development of industry and the advancement of technology. Today, NSK is the No.1 manufacturer of bearings in Japan, and the No.3 manufacturer globally..
NSK has used its expertise in precision machining technology, refined through years of bearing manufacturing, to diversify into automotive products, and precision machinery and parts. Since the 1960's, NSK has been aggressively developing its overseas markets, currently having 57 overseas production bases in 13 countries.
About ABC:
ABC is a solid mid-sized Indian Public Limited Company, founded in 1961, engaging in production and sales of tapered and cylindrical roller bearings, for supply mainly to Indian commercial vehicles, tractor and multi utility vehicle industries. In particular, the company holds a share in excess of 50% of the local market for tapered roller bearings.
