Press Release

NSK Holds Opening Ceremony for Its First Plant in Inland China

Aiming to Further Expand Business in China

High-Performance Ball Bearing for Cooling Fan Motors

Tokyo, Japan, April 10, 2013-NSK Ltd. (NSK; Headquarters: Tokyo, Japan; President and CEO: Norio Otsuka) today held the opening ceremony for its first production site in China's inland region at Hefei NSK Co., Ltd. in the city of Hefei, Anhui Province, China. The plant began initial mass-production operations last October, and from today, it will commence full-scale operations. The ceremony was attended by approximately 350 persons from in and outside the company, including numerous dignitaries from the Chinese government as well NSK President Norio Otsuka, representing the NSK Group, and Hideki Doi, Head of China Operations.
With this new production site, NSK will increase its supply capacity of bearings for automobiles and industrial machinery, further expand its business in China, and continue to contribute to the sustainable growth of China.

Basic concept for the new plant

1. Establishment of a plant in China's inland region, where growth in demand for bearings is particularly strong, even within China, which is maintaining a high rate of economic growth
  • Shorter delivery times and avoidance of exchange rate fluctuation risk through local production
  • Meet the need in China for local production
2. Largest plant investment for NSK outside Japan with the installation of state-of the-art facilities intended to achieve labor savings and greater efficiency
  • Production of a wide variety of quality products ranging from high-functionality products to general-purpose products created at a competitive cost
3. Promotion of self-sufficiency within China by establishing NSK's first mother plant outside Japan
  • Optimization of NSK's bearing production system in China through cooperation with the Kunshan Plant, which is a mother plant
  • Speedy operations led mainly by local staff, utilizing business operation know-how cultivated over nearly 20 years of operations at the Kunshan Plant in China
  • Meeting China's unique needs and promoting deeper local procurement through cooperation with the China R&D Center

1. Overview of Hefei NSK Co., Ltd.

Location: National Hefei New and High Technology Development Zone, Hefei, Anhui Province, China
Date of establishment: July 2011
Business areas: Manufacturing and sales of automobile bearings and industrial machinery bearings
Number of employees: Approximately 500 planned at the initial stage
Capital: USD 62 million at the initial stage
Investment breakdown: 100% from NSK Ltd.
Size of plant: Site area of approximately 100,000 m2 and building floor space of approximately 50,000 m2 planned at the initial stage
Commencement of operations: October 2012
Investment amount: Approximately USD 150 million planned at the initial stage

2. The opening ceremony

Welcoming numerous dignitaries and guests at the opening ceremony, NSK President Norio Otsuka, with CEO Norio Otsuka in attendance, stated: "NSK has built a plant with cutting-edge automation equipment and advanced technology in Hefei. By commencing full-scale operations, the bearing plant in Hefei will establish a system that can provide a timely and stable supply of quality products even in the inland region of China, which has thriving consumer electronics and emerging industries.

NSK plans to expand its production capabilities to provide products that range from the high-functionality end to items aimed at volume production featuring medium functionality but better pricing. It also plans to accelerate sales growth in China. By so doing we intend to be more assured of achieving NSK's growth strategy of doubling sales in China to over twice the current amount, to 200 billion yen, by NSK's centennial celebration in 2016."

3. About NSK's business in China

Since the 1960s, NSK has been aggressively developing its overseas markets. With the start of operations at the Hefei Plant, NSK now operates production facilities at 63 locations in 13 countries worldwide. NSK has been ahead of the competition in China for over 40 years, providing technical assistance for state-run businesses.

NSK started its production of bearings at Kunshan NSK Co., Ltd., which it established on the outskirts of Shanghai in 1995, and it has continued to expand its business in parallel with China's economic growth. Today, it produces a full product lineup including industrial machinery bearings, automotive bearings, automotive parts, and precision machinery and parts at 12 production sites in China.

Furthermore, NSK has been striving to improve customer satisfaction from the start through the establishment of Technical Service Centers that provide service on the full range of NSK products in China, as well as through nearly 20 sales locations that cover the whole of China.

NSK has already attained the top place in both market share and brand recognition in the bearings market in China as a locally based, self-sufficient company that utilizes local materials and human resources in production, marketing, technology, and management.