Establishment of China joint venture with Changzhou Guangyang Bearing Co. Ltd.(pic)

On 29 July, NTN Corporation (NTN) signed an agreement with China's Changzhou Guangyang Bearing Co. Ltd. (CGB) to establish a joint venture for the development, manufacture and marketing of automotive bearings (including needle roller bearings) in Changzhou City. 1. Aim of the joint venture The joint venture with CGB to manufacture and market automotive bearings (including needle roller bearings) will give NTN a Chinese production base for automotive bearings. Combining technological capabilities with CGB's state-enterprise business structure will enhance competitiveness in quality, pricing, delivery and service. The joint venture aims to meet the developing local sourcing needs of China-based auto producers by manufacturing and marketing products expected to see demand growth, such as needle roller bearings, cylindrical roller bearings and clutch release bearings. In addition to helping expand automotive bearing business in China, NTN will use the joint venture as a base for global bearing supply. The joint venture will include an engineering center for bearing development. The center's aim is to expand sales by creating new technologies and products. It will design, develop and test products in order to offer a timely response to the needs of Chinese auto producers and automotive-related manufacturers. 2. Targets The joint venture is to be established and start production in September 2004. Sales are targeted at ¥3.5 billion in 2005, rising to ¥11.0 billion in 2008. 3. Joint venture's profile • Name : Changzhou NTN-Guangyang Corporation • Business : Development, manufacture and marketing of needle roller bearings, cylindrical roller bearings, clutch release bearings, and other bearings • Capitalization : US$12 million (approximately ¥1.3 billion) • Ownership : NTN 51%, CGB 49% • Address : No. 52 Han River Road, Changzhou Riverside Industrial Zone, Jiangsu Province, China • Establishment : September 2004 • Start of operations : September 2004 • Site area : 83,000m2 • Building area : 33,000m2 • Investment : US$28 million (approximately ¥3.0 billion) • Staff : approximately 1,300 (in 2008) 4. Signing ceremony