ZKL Considers Manufacturing in India

ZKL Bearings CZ, a.s. (Czech Republic, a subsidiary of ZKL a.s.) announced it is seriously studying shifting at least some bearing manufacturing from the Czech Republic to India. ZKL's partner in India, ZKL Bearings India Pvt. Ltd., has been selling bearings since 2002; after a slow start, sales recently quintupled from approximately USD $1 million per year to more than $5 million per year. The company said in a prepared statement the reasons for moving production to India are, "cost escalation on three fronts -- labor, power, and the currency has also appreciated." ZKL said that overall, its manufacturing costs in the Czech Republic are up more than 30%. ZKL Czech would contribute 80% of the funding to form the new Indian venture, paying for all tangible assets and providing operating capital. ZKL India's 20% ownership would be equity-only. West Bengal, home to several other bearing manufacturers, is reportedly under consideration as ZKL's preferred location.