Hoover Precision Products Inc. (Cumming, Georgia), a subsidiary of Tsubaki Nakashima (Nara, Japan) is building a new bearing ball plant outside Shanghai, China. The name of the factory will be Tsubaki Hoover (Suzhu) or "THS".

Construction will begin in early spring on the 65,000 square foot facility; it is expected to come online sometime in late 2002. The company is investing approximately USD $7.6 million in the project.

The factory will manufacture electric motor quality (EMQ) 52100 chrome steel balls in sizes from 5/32" up to 17/64" diameter. Other production capacity and capabilities will be added as the market allows.

Targeted to the internal Chinese market, the balls are intended for bearings going into electric motors for air conditioners, refrigerators and other household appliances. Sales are expected to hit USD $7.6 million within 18 months after startup.

As manufacturers move more and more production of appliances and household equipment to China, the opportunities for electric motor suppliers continue to grow. THS expects to sell not only to Chinese companies but also to transplanted factories from Europe and North America.

Hoover is not the only company looking forward to a growing Chinese market. Late last month, General Bearing bought controlling ownership in its ball manufacturing joint venture in China, Jiangsu General Ball & Roller Company Ltd. Jiangsu General is China's largest manufacturer of steel balls.

Hoover currently operates six manufacturing facilities: Cumming, Georgia USA; East Granby, Connecticut USA; Erwin, Tennessee USA; Sault Ste. Marie, Michigan USA; Puebla, Mexico and Debrecen, Hungary.

The company also operates a 21,000 square foot warehouse in Washington, Indiana. Along with the warehouse, Hoover had been manufacturing balls in Washington until just recently. Acquired from the former Superior Ball Company, the facilities produced semi-precision balls. Approximately 100 people lost their jobs when production was moved to Mexico this past year. The plant closing announcement was made in July 2001 and the facilities were shuttered by November 2001.