European Bearing Will Build Plant in India

European Bearing Corp. (EBC, Russia) announced it has set up a subsidiary, EBC Bearings India Ltd., to build a bearing manufacturing plant in India. The company said construction on the plant, in Hyderabad, will begin shortly. In addition, EBC plans a type of keiretsu, with suppliers encouraged to set up small satellite locations on the facility's grounds. The system, they hope, will help ensure steady component supplies, keep in-plant owned inventory levels low, and improve quality control. European Bearing Corp. is the largest CIS bearing company, controlling approximately 40% of the overall Russian bearing market, and producing more than 80% of the country's non-commodity and specialty bearings. Founded in 2000, EBC has four plants acquired in the same privatization move: Moscow's legendary GPZ-1 (former Bearing Plant #1), the Moscow Aviation Bearing Plant, the former VPZ-15 bearing plant in Volzhsky, and the former SPZ-16 16th State Ball Bearing Plant in Stepnogorsk, Kazakhstan. In September 2005, EBC acquired its fifth facility, the Samara Aircraft Bearing Plant, formerly GPZ-4 4th State Bearing Plant. EBC's Stepnogorsk plant is the largest bearing factory in Kazakhstan, and had been EBC's only manufacturing location outside Russia. It produces more than 2.2 million heavy-duty rail and other large cylindrical roller bearings each year. All EBC plants are certified ISO 9001:2000. Production in Hyderabad will reportedly parallel a mix of what is being produced in Volzhsky, Stepnogorsk, and Moscow -- focusing on larger specialty bearings, from 400mm to 700mm OD. Target markets will be India's fast-growing heavy-duty industrial manufacturing and mining sectors, and rail. By the time it comes online, EBC projects the Hyderabad plant will cost Rs 1.24 billion (USD $27 million) and could eventually employ as many as 1,500 workers.