NSK Building New Bearing Plant in Japan

NSK Building New Bearing Plant in Japan NSK Ltd. (Japan; TSE1: 6471) announced it will build a new bearing manufacturing plant in Japan's Fujisawa City, Kanagawa Prefecture. It will NSK's second in Fujisawa City, joining the company's original Fujisawa Plant now celebrating 90 years in operation. The new factory will be dedicated to producing industrial bearings, becoming a key part of NSK's program to improve its position in that market internationally. Target markets for Fujisawa's bearings will be general industrial equipment, steel manufacturing equipment, machine tools, construction equipment, aircraft manufacturing equipment, robotics, and wind power generation. Budgeted in at approximately ¥11.5 billion (USD $100 million), the facility will cover 15,000 square meters and eventually employ more than 100 workers. Construction is set to begin in October 2006 and it is tentatively scheduled to come online in January 2008. By 2010, the plant's total capacity will be online, boosting NSK's industrial bearing production from ¥60 billion per year to ¥80 billion ($690 million). Industrial bearings have been a particularly bright spot for NSK, with sales last quarter up 5%, reaching $417 million and returning operating margins averaging 11%. Japan, Europe and Asia are the strongest markets.