NTN Mie Plant Begins Production

NTN Corporation (Japan) has brought its groundbreaking Mie facility online. Unique within NTN, Mie Corporation (Japan) is organized as a separate business. Its purpose is to meet the strengthening challenge of Chinese bearing manufacturers head-on, in Japan with a Japanese manufacturing facility. Specifically, NTN Mie is charged with the responsibility for developing and commercializing leading-edge bearing manufacturing methods, processes, machine technologies, and operating practices. In its establishment statement, NTN said Mie's, "aim is to quickly build a bearing production factory that matches the Chinese on lead time and costs and makes it a model for domestic production." The location for this new business was no accident. Mie Prefecture is not only where NTN had its first production, in 1918 at the Nishiozono Iron Works, but is also home to many of NTN's most important vendors. Its proximity to the key Kuwana Works (built 1939) and the Kuwana Engineering Center allows NTN Mie, to take advantage of, "a wide range of engineering assistance from its affiliates and suppliers in the Kuwana region." As a greenfield factory, Mie is 36,000 square meters (387,500 square feet), and will eventually employ over 300 people by the end of 2007. eBearing has learned NTN is budgeting more than ¥3 billion ($27.5 million) for Mie's startup phase -- through February 2005 -- plant and equipment expenditures. No estimates were available for what NTN expects to invest by the time it is fully operational in 2007. The plant was virtually complete by early October and has gradually begun to ramp up manufacturing. Sales targets for Mie are approximately ¥ 15 billion ($138 million) by the time the plant is fully operational by end of 2007. Beyond being fully competitive with Chinese producers, NTN said Mie has five key business goals: ¡¤ NTN's unique method of bearing production that cannot be matched by competitors ¡¤ Introduction of multi-kind products, variable quantity production ¡¤ Diversified production methods ¡¤ Better productivity through low-cost, high-function machines. Reduction in the number of machines. ¡¤ Reduction of material flow cost NTN's manufacturing approach is opposite the one being pursued by other major manufacturers -- particularly Timken and INA/FAG -- who are assigning bearing production on an item-by-item, plant-by-plant basis worldwide. Essentially, the most competitive plant wins specialist production of an item or related group of items. Instead, NTN's Mie approach is to build a single plant, flexible enough to produce any bearing needed, in any quantity needed, and competitive with any other on quality, price and delivery. Although NTN gave no guidance, an individual familiar with the situation told eBearing the parent company is willing to invest, "pretty much whatever it takes," to move its Japanese plants into competition at every level with Chinese and Asian bearing manufacturing. If Mie's flexible manufacturing approach is successful, eBearing has learned NTN has preliminary plans to roll out Mie-type plants in its other key markets around the world. He said, "Mie may fail. Or it might introduce the bearing industry to a new manufacturing paradigm."