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The eBearing News
September 2, 2003
Koyo Buys Out Partner in
TRW Koyo Steering Systems Co.
copyright © 2003 eBearing Inc.
Koyo Seiko Co. Ltd. (Japan) is buying out its U.S. joint venture partner in TRW Koyo Steering
Systems Co. (TKS, USA). Currently, Northrop Grumman owns 51% and Koyo owns 49%.
TKS was formed in 1988 when Koyo Seiko and TRW (USA) agreed to join forces and approach the growing
number of Asian automakers setting up manufacturing facilities in the U.S. TRW was the world's largest
manufacturer of steering gears, and Koyo is Japan's largest.
Koyo has been manufacturing steering systems and components since 1960 at its Kokubu plant, and
electronic power steering systems since 1984, the first Japanese company to do so. TKS is one of several
Koyo steering gear joint ventures, the others being in Malaysia, India, Thailand, the Czech Republic,
China and Brazil.
The U.S. TKS joint venture worked to the market strengths of both companies; they had been involved
in a similar steering gear joint venture, TRW Koyo Co. Ltd., since 1969.
TRW Koyo Steering Systems Co. chose to build in Vonore, Tennessee. Completed in 1989, the facility covers
more than 300,000 square feet. At Vonore, TKS currently manufactures power
rack and pinion steering gears and hose assemblies.
TRW was acquired by Northrop Grumman (USA) in early 2003.
Grumman always said it was
only interested in TRW's defense and aerospace businesses, and would immediately sell off
all other TRW operations. In fact, prior to Grumman's acquisition of TRW, The Blackstone
Group acquired essentially all of TRW's automotive-related businesses.
•article: Blackstone Group acquires TRW Automotive
The TRW Koyo joint venture ended up, however, not with Blackstone Group but inside Northrop, as part of its
Northrop Grumman Space & Mission Systems Corp. division.
Koyo said it will pay Northrop Grumman approximately USD $76.5 million for full ownership of TKS, and
indicated the deal should close by the end of September 2003.
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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
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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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