NTN and NEI Building CV Joint Plant in India

National Engineering Industries (NEI, a division of GP-CK Birla Group, India) and NTN Corp. (Japan) announced a joint venture greenfield manufacturing facility, to be build in Haryana, India. The plant will produce constant velocity joints, targeting India's fast-growing automotive and light truck manufacturing industry. It is NTN's tenth facility worldwide, dedicated to production of CV joints. Reportedly the world's second-largest producer of CV joints, NTN is aiming to continue growing its market share by aggressively pursuing emerging Asian market opportunities. India has Asia's fourth-largest auto manufacturing capacity, after Japan, South Korea, and China. Initially, the investment will total USD $2.5 million, 80% put up by NTN and 20% by NEI. By the time the plant is online, currently planned for first or second quarter 2007, the companies are expecting to spend in excess of $16 million. In the future, both companies said the Haryana facility is likely to host a wider variety of other automotive and industrial bearing distribution and manufacturing operations. NEI -- with three ball and roller bearing manufacturing facilities in India -- and NTN have built up a variety of technology-sharing and joint venture business relationships since 1985.