NSK Expands Production in Brazil

NSK Ltd. (Japan) said it will be expanding its manufacturing facility in Suzano City (Sao Paulo) Brazil, NSK Brasil Ltda., where sales are again straining the plant's capacity. Already the largest manufacturer of ball bearings in Latin America, NSK Brasil's USD $2.5 million investment will boost production from the current 3.6 million bearings per month to 5 million bearings per month by late 2004. Running at full capacity, NSK Brasil's 2003 sales are projected to come in at 43.2 million units, more than 20% above 2002; jumping to 60 million units in 2004 represents a further 40% increase. This investment and production strategy is part of a larger program, to expand NSK Brazil's reach and ability to service more of South America, Central America and North America. NSK Brasil currently sells only into Argentina and Brazil, but its dominant market presence -- 55% of the Brazilian ball bearing market -- leaves little room for growth. The new investment comes on top of $1.5 million spent during 2002 to expand ball bearing production and set up facilities to better serve the Brazilian automotive aftermarket. This happened after Delphi Corp. (USA) and NSK ended a 4-year joint venture investigating the production of wheel bearing hub assembly units inside the Suzano plant. NSK Brasil's plant in Suzano, dating from 1972, is 40,000 square meters. Overall, NSK Brasil employs over 600 people. Beyond Suzano, its facilities include five offices and training facilities around Brazil and Argentina.