Koyo Seiko Co. Ltd. (Osaka, Japan), through its new division, Koyo Steering Systems USA (Plymouth, Michigan) is building a new factory in Roanoke, Virginia to manufacture electric power steering systems.

Industry experts predict electric power steering units will replace traditional hydraulic power steering systems within the next five to seven model years. In 2003, fully 30% of new cars (approximately 20 million units) are expected to be built with electric power steering.

Koyo is already involved in steering joint ventures with TRW (TRW Koyo Steering Systems Company, in Vonore, Tennessee), Yubei (Yubei Koyo Steering System Co. Ltd., in China), FAW (FAW Koyo Steering Systems Co. Ltd., in China), Sona (Sona Koyo Steering Systems Ltd., in India), and Mitsubishi Electric (Czech Republic).

In addition, Koyo now has wholly-owned steering system plants in several other countries: Koyo Steering Brasil Ltda. (Brazil), Koyo Steering Argentina S.A. (Argentina), Koyo Steering Dijon Saint-Etienne (two factories in France), and Koyo Steering Thailand Ltd. (Thailand).

Koyo's new Virginia plant is being built to supply a contract for General Motors' Saturn Division new VUE sport-utility vehicle. The Saturn VUE will be the first U.S.-produced vehicle to employ electric power steering.

Roanoke's manufacturing capability is scheduled to come online in mid-2002. Until then, Koyo will supply Saturn with units assembled in Roanoke from components manufactured elsewhere.

Many bearing manufacturers have been applying their expertise in pursuing the new electric power steering market; Koyo's systems have been used for over a decade in Japan. Today, electric power steering is only available in the United States on a few high-end and specialty vehicles - the Acura NSX, Honda Insight and Honda S2000.

Koyo recently bought a 24% stake in Fuji Kiko (Washizu, Japan) so that the two companies can jointly develop electric power steering systems. Fuji Kiko is a key supplier of standard steering system components.