The Timken Company (Canton, Ohio) has bought out its local Chinese partner in Yantai Timken. Yantai Timken is the result of a 1996 joint venture between Timken and Shandong Yantai Bearing Factory.

Timken says it will now be able to move ahead quickly with its plans to transfer and implement advanced production technology, enhancing productivity and quality.

There are a number of bearing companies operating in Yantai province manufacturing for both domestic and export markets. Yantai Timken produces products primarily for the Chinese automotive, heavy duty and mobile industrial markets. It hopes to expand its export markets substantially in the near future.

With help from the local government and with its local partner out of the way, Timken has been able reach agreements which reduce the factory's historically bloated employment rolls by fully one third, down to 970 workers. However, those remaining 970 still only produce $10 million in product.

Jim Griffith, Timken's President and CEO, said, "China is an integral part of the company's global business strategy to strengthen its presence in high-growth markets...the change also increases our ability to achieve greater productivity and efficiency in Yantai. A principal goal of our company's transformation is to become truly global. This buyout will move us closer to that objective."