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The eBearing News
July 3, 2003
NSK Acquires NSK-Torrington
Joint Venture from Timken
copyright © 2003 eBearing Inc.
NSK Ltd. (Japan), paying USD $146 million, has acquired full ownership of the needle bearing joint
venture it formed with The Torrington Company (USA) back in 1963.
NSK-Torrington Co. Ltd. (Japan) became 49% owned by The Timken Company (USA) when it acquired Torrington
earlier this year. The acquisition, however, triggered a buyout clause giving NSK the option to
acquire full ownership of the venture.
NSK will rename the company NSK Needle Bearing Co. Ltd.
The strained financial conditions of both NSK and Timken called into question what would actually
happen to NSK-Torrington, as eBearing reported in detail several weeks ago:
• article: Timken takeover of NSK-Torrington in question
As recently as mid-May, NSK officials in Japan told eBearing the company had "not decided yet"
what it would do about its interest in NSK-Torrington, which has sales of approximately $200 million per year.
At the same time, NSK executives wanted us to make it very clear that they are in no way at odds
with Timken, asking us to point out specifically, "Timken and NSK have good relations
including joint venture in China."
In April 2003, Timken and NSK broke ground on a joint venture facility in Suzhou, China. The
$40 million 50%/50% joint venture will produce single-row tapered roller bearings.
• article: Timken and NSK joint venture in Suzhou
NSK-Torrington Co. Ltd. was established in 1963 as the first joint venture of its type,
involving Nippon Seiko K., Tokyo Bearing Co. and The Torrington Company. The company's first
facility, in Takasaki, produced only Torrington-engineered drawn cup needle bearings.
Forty years later, the company operates three plants in
two locations. The Takasaki #1 and Yawata (Takasaki #2) plants are in Takasaki. A third major
facility, built in 1998, is located in Haruna. In 2000, the former Tokyo Bearing plant in
Konosu was closed and production transferred to the main Takasaki facility.
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Takasaki Plant #1
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Haruna Plant
(photos courtesy NSK Ltd.)
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All told, the three facilities cover over 154,000 square meters (1.6 million square feet) of
manufacturing floorspace and employ almost 1,000 people. Annual sales are approximately
$200 million, with net income of approximately $9 million.
Product lines now include drawn cup needle roller bearings, cage & roller assemblies,
solid needle bearings, thrust needle bearings, micro shafts, sensor rotors for anti-lock braking systems,
planetary gear shafts, universal joints, linear ball bearings, cam followers,
roller followers, tension levelers, and tappet roller bearings.
Profitability remains slim, however. In 2002, Torrington reported netting less than
1.8% on sales from NSK-Torrington.
Timken president and CEO Jim Griffith said, "When we bought Torrington, NSK approached us about buying
our interest in the manufacturing venture. We concluded that, following such a transaction, we could
continue to serve our Japan-based customers effectively. Going forward, Timken and NSK will continue
to work together in other ventures involving sales, marketing and technology advancement."
Timken said it intends to use the $146 million to pay down debt incurred in the Torrington acquisition.
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
trademarks of eBearing Inc.
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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