Tokyo, Japan, April 13, 2011 - NSK Ltd. (NSK; Headquarters: Tokyo, Japan; President and CEO: Norio Otsuka) announced today that it has decided to acquire a 10% stake in Gongzhuling Bearing Co., Ltd. (Headquarters: Gongzhuling City, Jilin Province, China; President: Li Gang; Hereafter, “Gongzhuling Bearing”), a subsidiary of Ningbo MOS Group Corporation Limited (Headquarters: Zhuangshi Zhenhai District, Ningbo City, Zhejiang Province, China; President: Li Gang; Hereafter, “the MOS Group”). NSK plans to acquire new shares issued by Gongzhuling Bearing through a third-party allotment scheduled for conclusion in June 2012.
|Ownership Structure of Gongzhuling Bearing Co., Ltd.
|Ownership after NSK's acquisition of shares in June 2012
At the signing ceremony for the acquisition agreement, Tsutomu Komori, Executive Vice President in charge of NSK's Automotive Business Division Headquarters, said: “NSK has the top market share for bearings in China. We are aiming to double our current level of sales in China to 200 billion yen by NSK's centenary in 2016. By establishing this partnership with Gongzhuling Bearing, we hope to further deepen our understanding of the Chinese market and to further contribute to the country's economic development. Through our collaboration with Gongzhuling Bearing, NSK aims to identify future trends in the market as quickly as possible. In tandem with China's further growth, NSK will continue on its path to becoming a true insider in the Chinese market”
Gongzhuling Bearing President Li Gang remarked: “It is a great honor to offer a stake in our company to NSK, a world-leading bearing manufacturer. We already have a strong presence in the high-volume market. By collaborating with NSK, with its globally advanced technological capabilities, we can now also target the high-end market which has been difficult for us to enter on our own in the past. Gongzhuling Bearing and NSK are an ideal match, as we can pursue wider segments of the Chinese market through collaboration.”
NSK is the third largest bearing manufacturer in the world. Having a global number-one share in automotive bearings and the number-two share in steering systems, NSK provides a wide range of automotive components to customers globally. In China, NSK sells automotive bearings such as hub unit bearings as well as electric power steering and other steering systems. Gongzhuling Bearing supplies a wide variety of automotive bearings to Chinese automobile manufacturers.
With the further growth of the automobile market in China, highly advanced automotive technologies are being introduced. In the high-volume segment, cost performance has been the top priority until now. However, high functionality such as lower fuel consumption and product durability are becoming more and more important. This development is leading to significant changes in the Chinese market environment.