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Japan's Bearing Industry Status


On March 11, 2011, northeastern Japan suffered dual natural disasters in the form of a record 9.0 earthquake and subsequent tsunami. Adding to the terrible toll in lives lost and widespread environmental and economic destruction, virtually all of the country's industries will continue to experience some impact for a long time. Japan's government expects the economic toll to eventually exceed $300 billion.

Bearing manufacturing and distribution is a key industry segment experiencing varying levels of raw materials, manufacturing, and shipping disruptions. Even if their plants haven't suffered direct damage, power rationing, road and rail disruptions and materials shortages are only a few of the many challenges facing manufacturers and supply chains.

On this page, we'll attempt to keep you informed with the latest news and developments relating to the bearing industry, along with status reports from various specific companies.



Relief Options

The most comprehensive coverage of organizations mobilized to provide relief is in a Huffington Post article : click here [opens in new tab or window]

JTEKT / Koyo

JTEKT announced it will provide approximately ¥70 million (USD $875,000) in aid to the affected areas of Japan, in addition to corporate and individual donations of time and resources to the recovery effort.

The company said it is ramping up the Machine Tools & Mechatronics operations on a 24-hour basis to help customer companies restore their own production and operations as quickly as possible.

There have been no reports of injuries to employees or their families.

Buildings, machines and equipment are undamaged, and operations remain normal. The company also said its tier 1 and tier 2 suppliers of bearing components are running normally and should not cause disruption.

Scheduling around the planned power blackouts, "will not cause a disruption to our production schedules."

Early on, the company noted growing backlogs of outbound freight at Narita Airport and all northern Japanese ports, due to both the volume of high-priority inbound freight and power supply disruptions. However, as of the end of March, JTEKT expected no shipment delays for its products coming of Japan.

JTEKT press release, March 14
JTEKT press release, March 15
JTEKT press release, March 28
JTEKT press release, April 8
JTEKT press release, April 21


Minebea

In its initial assessment, Minebea said there has been no significant damage to its factories in Nagoya, Shizuoka, Kanagawa, Tottori or Gunma Prefectures, or in Tokyo.

Four smaller plants in the Kanto region: Omori, Fujisawa, Matsuida, and Daiichi Precision Mold, will be impacted by electricity disruptions and rolling blackouts

The company said more than 90% of its products are now manufactured outside Japan, primarily in Taiwan and China, so production should not be significantly impacted.

Minebea announced it will provide approximately ¥50 million (USD $650,000) to relief efforts. Employee fund-raising will add to that total. In addition, Minebea said it will donate the funds previously earmarked for its 60th anniversary celebration in July.

On May 18, Minebea announced all of its locations in Japan will shut down for a week, from August 8 through 12, 2011. Part of a nationwide conservation effort, it is hoped these organized shutdowns will help Japan's overstressed power grid cope with the summer's demand. Minebea sad it recognizes the shutdowns will cause, "inconvenience to our customers and partner suppliers."

Minebea press release, March 14
Minebea press release, March 17
Minebea press release, May 18


NACHI

Nachi said its employees are reported safe. The company assessed its plants, offices and subsidiaries, finding no physical damage so far, and no reason to expect supply disruptions.

As of March 15, the company said it expects no immediate impact on operations, although power shortages and materials shortages may change the situation in the future.

NACHI press release, March 15


Nippon Bearing Co. Ltd.

NB -- Nippon Bearing Company Ltd. -- reported it is located in Niigata Prefecture, on the opposite side of the island of Honshu from where the earthquake and tsunami damage occurred. No loss of life or damage to facilities occurred. NB said it remains alert to winds that may carry nuclear fallout, but there have been no reports of any related issues.

Nippon Bearing reported some early issues with both inbound and outbound shipments due to port disruptions and transportation disruptions. The main issues facing the company are planning and managing production and distribution amid rolling blackouts and mandatory energy conservation efforts which are expected to continue in the wake of losing the Fukushima power plant's output on the Japanese power grid.

Nippon Bearing Corporation press releases

Nippon Thompson / IKO

IKO -- Nippon Thompson Company, Ltd. -- reported all employees safe and none of its facilities damaged or directly impacted.

Nippon Thompson noted most of its facilities are located at least 170 miles Southwest of Tokyo, far from the disaster area.

The company expects that its exports by boat should continue, as they leave from Nagoya, approximately 160 miles Southwest of Tokyo. Air shipments may be delayed due to power outages and flight disruptions.

Nippon Thompson press release, March 15

NSK

NSK CEO Norio Otuska announced the company is providing support to the devastated area for a total of ¥105 million+ (USD $1.4 million) in donations from NSK Group, Managers at NSK Ltd., the NSK Welfare Fund (including donations by other corporate officers), and from NSK employees outside Japan.

Following the disaster, NSK formed an emergency response headquarters to confirm the safety of employees and maintain a central point of information about facilities and production.

NSK found its Fukushima plant most impacted, with damage limited to several machines being moved by the earthquake. Power delivery to Fukushima was disrupted, and the plant went through full shutdown, through partial shutdown, and is now back fully opeartional.

The Saitama Plant also had several machines moved by the earthquakes, and was in partial shutdown.

Beyond these two plants, NSK's other eight facilities in Japan are all undamaged but are under partial shutdown due to the rolling blackouts.

NSK press release, March 16
NSK press release, March 17
NSK press release, March 22
NSK press release, March 23
NSK press release, April 8


NTN Corporation

NTN Group said it believes no employees were lost.

NTN is offering assistance to the affected areas in terms of donations by NTN, its executives and employee fundraising efforts. So far, the total approaches USD $2 million.

Production continues as usual. However, "occasional disruptions" in distribution and other areas may occur due to the rolling blackouts, transportation limitations, and other factors.

In addition, NTN noted that ports have been disrupted due to relief efforts taking priority over commercial shipments. Outgoing commercial freight may be disrupted for some time, so NTN is making contingency plans to keep shipments moving.

NTN press release, March 15
NTN press release, March 22


Timken

Timken reported no damage to its offices in Japan.



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