INA Schaeffler (Herzogenaurach, Germany) is headed into at least two joint ventures (joint stock companies) with Russia's European Bearing Corporation (Moscow, Russia). Follow-on joint ventures are reported to be already in the planning stages.

These first two joint ventures involve production of large bearings and railroad bearings, primarily for the Eastern European market. Located in EBC's existing facilities in Stepnogorsky, the total investment by both companies at this stage is estimated at USD $20 million. Bearings manufactured under this agreement will most likely carry the FAG trademark.

Reportedly, the two ventures are already set to be expanded into several others, with a total investment of $70 million. Eventually, the two companies expect the total production of their joint ventures to be over $120 million per year.

Russia's European Bearing Corporation produces bearings under the GPZ brand. It was formed in 2001 to privatize three bearing factories, each the largest of its type in the country. The Moscow plant (built 1932) produces various types of precision and large bearings; the Volzhsky factory (built 1961) manufactures tapered and cylindrical roller bearings; and the Stepnogorsky plant (built 1976) manufactures various types of heavy cylindrical roller and rail bearings.

In all, EBC's three plants employ over 16,000 people and can produce 82 million bearings per year (31 million produced in 2001) in bore sizes from 12 millimeters to 2 meters. The company is Russia's largest bearing manufacturer, with sales of approximately $95 million and 35% of the Russian market. Of EBC's total sales, 75% are in Russia, 15% to other former Soviet states and 10% overseas.

INA, since its acquisition of FAG Kugelfischer, is now the world's second-largest bearing manufacturer, behind SKF. Until now, INA's presence in the former Soviet bloc has been limited to the Czech Republic and Slovenia.