NTN and Korea Flange in Alabama JV

NTN and Korea Flange in Alabama JV NTN Corporation (Japan) and Korea Flange Corp Ltd. (KOFCO) have formed a joint venture to build a plant and manufacture constant velocity joint bearings in Auburn, Alabama. The new company, Seohan-NTN Driveshaft USA Corp., is 49% owned by NTN and 51% by KOFCO. Seohan-NTN will exist solely to manufacture CV joints and shaft assemblies destined for the Hyundai Motor Manufacturing plant in Montgomery, Alabama. Hyundai has specified its global suppliers for key components, such as CV joints, must set up plant-specific local sourcing. In Alabama, Hyundai now manufactures the Santa Fe sport utility and Sonata sedan. The Seohan-NTN joint venture leverages strengths of both KOFCO and NTN. NTN brings its experience manufacturing CV joints in the U.S. at its NTN Driveshaft plant in Columbus, Indiana. KOFCO is Hyundai-Kia's sole CV joint supplier in the automaker's Korean home market and in China. In China, KOFCO and NTN know each other from a successful 2003 joint venture there. Set up in Shanghai, the unit manufactures CV joints for Hyundai-Kia autos built in China. NTN licenses technology to KOFCO. The highly automated facility being built in Auburn is expected to be complete and online by early 2008. A new building there will cover approximately 30,000 square feet. In all, the operation is budgeted at approximately $35 million. Although NTN indicated the plant might employ as many as 60 people by 2009, the Auburn Industrial Development Board has pegged it as closer to 170. Auburn also came through with a $100,000 incentive package for the venture.