Taiho Kogyo Building Engine Bearing Plant In China

Taiho Kogyo Co. Ltd. ,a separately traded division of Toyota Motor Company) recently announced it will significantly expand its engine bearing manufacturing presence in Yantai, Shandong Province, China. Taiho Kogyo is one of the world's largest manufacturers of plain bearings, although it did not start manufacturing plain bearings until 1961 when it established a technology-sharing joint venture with Federal-Mogul Corporation (USA). Reliable estimates put Taiho Kogyo's yearly production of engine bearings at more than 20 million. Taiho Kogyo has more than 20 manufacturing locations around the world, supplying all of the world's key automakers with all types of engine bearings, thrust bearings, thrust washers, various die cast products and gaskets. For example, Taiho currently has more than 50% market share for plain engine bearings used in Japanese cars and motorcycles. This most recently announced expansion in China leverages the company's 2002 acquisition of Yantai Chunsang Bearing Company. The new capacity is being built out in two phases. First is an expansion and modernization of the existing former Yantai Chunsang facility. The second phase is construction of a additional manufacturing facility in Yantai Industrial Park, with more than 12,000 square meters (130,000 square feet) of manufacturing floorspace. Engine bearing demand in China is being driven by Japanese automakers locating new plants. While Taiho Kogyo's largest customer is Toyota, it also supplies most other Japanese automakers. In addition, the product line is being extended to include heavier wall engine bearings, suitable for the diesel engine applications popular in the region. Between 2006 and 2010, Taiho Kogyo's expects its bearing production in China to more than double. The Yantai plant expansion, including the diesel engine bearing capacity, is now coming online; the new Yantai Industrial Park facility for gasoline engine bearings is scheduled to be finished and online by early 2008.