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The eBearing News
January 8, 2004
FAG Acquires Full Ownership of
Rail Bearing Joint Venture in China
copyright © 2004 eBearing Inc.
FAG Bearing (Germany, a division of the INA Schaeffler Group) has acquired full ownership of Ningxia
FAG Xibei Railway Bearing Co., Ltd. (China), a joint venture company it set up in December 2001
with Xibei Bearings Group Co. Ltd. (China).
The venture had been 51% owned by FAG and 49% owned by Xibei; each company contributed USD $9 million
to its formation. Production facilities are located in Yinchuan.
• article: FAG and Xibei form rail bearing joint venture
Ningxia Railway Bearing focuses on manufacturing and rebuilding railway bearings for the
fast-growing precision rail bearing market inside China, including high-speed rail applications. The company
also supplies quality-certified components used by other rail bearing remanufacturers around the world.
Announcing the company's formation in 2001, Xibei
and FAG said they believe China is now and will remain the largest potential market in the world for
all types of rail bearings. They estimated sales for the joint venture would hit $30 million by 2004.
The company currently claims 20% market share of all rail bearings sold in China, although it did not
disclose sales or volume figures. China's Ministry of Railways puts domestic market demand at more
than 800,000 bearings per year, with almost 6 million units in service.
Financial details of the buyout were not released, nor was a name change mentioned. As ownership
transfers to FAG, Xibei said it will continue as the preferred component vendor to Ningxia Railway Bearing.
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
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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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