Press Release

Notice Regarding Termination of Steering Joint Venture Discussions

NSK Ltd. (hereinafter, “NSK”) hereby announces that, although it has discussed the formation of a joint venture with thyssenkrupp AG (hereinafter, “thyssenkrupp”; Headquarters: Essen, North Rhine-Westphalia, Germany; Representative: Martina Merz, Executive Board CEO), as announced in the press release dated May 12, 2022 and entitled “thyssenkrupp Automotive and NSK Steering to Evaluate Cooperation”, NSK has resolved today to terminate such discussions.


1. Reasons for Terminating Negotiations

NSK and thyssenkrupp entered into a memorandum of understanding in May 2022 for the formation of a steering business joint venture with the aim of combining our technological capabilities to meet the broad and critical technological needs of customers and to develop and sustainably strengthen the competitiveness of the steering business. Since May 2022, both companies have continued various discussions regarding the strategic direction and the terms and conditions of forming the joint venture. However, due to changes in external factors affecting both companies’ steering business after signing the memorandum of understanding, including the rapid deterioration of economic conditions and changes in the industry environment, such as surging costs in energy, natural resources and materials as well as logistics costs remaining high as a result of continued inflation, in addition to increases in labor costs resulting from overwhelming demand of human resources, as well as instability in the financial system, both companies have reached a mutual understanding that forming a joint venture within the originally planned timeframe would be difficult. On this basis, we have resolved to terminate negotiations and have terminated the memorandum of understanding with thyssenkrupp.

2. Future Developments

While we have terminated discussions regarding the formation of the joint venture, we plan to consider alliances with external strategic partners for our steering business as the business environment changes in the future.

3. Effects on NSK’s Business Performance

This matter has no impact on NSK’s business performance.