FAG Kugelfischer (Schweinfurt, Germany) has formed a joint venture with Xibei Bearings Group Co. Ltd. (Yinchuan, Ningzia, China).

The venture -- located in Xibei, China -- will manufacture, distribute and repair railroad bearings.

As yet unnamed, the new company will be 51% owned by FAG and 49% owned by Xibei. Both companies will contribute € 11 million.

Expected sales are € 20 million in the first two years, reaching € 30 million per year after 5 years.

FAG is being taken over by INA, forming the world's second-largest bearing company. Xibei is a major manufacturing conglomerate; six plants all in one 101 hectare location, employing over 9,000 people. Xibei is China's fourth-largest bearing maker.