|
|
|
|
The eBearing News
January 21, 2005
Wanxiang and Sojitz in
Joint Venture to Produce Bearings
copyright © 2005 eBearing Inc.
Wanxiang Qianchao Co. (China, the main operating division of Wanxiang Group, China) and Sojitz
Holdings Corp. (Japan) have agreed to set up a joint venture manufacturing operation at
Wanxiang's home operation in Hangzhou, Zhejiang Province, China.
Wanxiang directors gave final approval to the venture yesterday.
The new business was formed by Wanxiang contributing plant and equipment totaling USD $9.5 million,
while Sojitz contributed $3.2 million in cash. The operation will manufacture precision parts and bearings,
leveraging Sojitz' participation in the Asian automotive and aerospace industries.
Wanxiang, China's second-largest private business operation, is one of China's largest
manufacturers of u-joints, CV joints, bearings and other automotive components.
Sojitz, created by the mid-2004 merger of Japan's Nissho Iwai Corp. and Nichimen Corp., is one
of the world's largest international trading companies, with operations on six continents.
Widely diversified, Sojitz has also been in financial trouble. In September, the company announced
it will book 2004 losses of at
least ¥400 billion, up from the previously announced ¥250 billion. In mid-September,
Sojitz landed an infusion of ¥370 million from its lenders.
Sojitz already has several bearing-related ventures in China. The Kunshan plant, a 15%-owned joint venture
operation with NSK Co., Ltd., is NSK's flagship production base in China. In Zhejiang, Sojitz
has two: Zhejiang Asahi Bearing Co. Ltd. (60% owned), and Shaoxing Asahi Bearing Co. Ltd.
(20% owned), producing lathing rings used to manufacture bearings.
In late 2004, Sojitz announced a renewed focus on its bearing operations: "We are pursuing global
development of our bearing business, a key component of the machine
industry. We are pursuing worldwide sales of high-precision bearings manufactured in Japan
and China, and have established joint-venture companies with Japanese components manufacturers,
and are supplying bearing components to all parts of the globe. Focusing further on the
components sector, we are strengthening collaboration with local Chinese manufacturers."
When formally approved by regulators, Wanxiang will own 75% of the business and Sojitz
will hold the remaining 25%.
In a statement, Wanxiang said its involvement in the joint venture is to expand its market
experience and engineering knowledge of the aerospace and automotive markets.
|
|
|
printer-friendly version
|
|
- by Bruce A. Carr
from individual research,
tips and commercial sources.
Copyrighted material; unauthorized reproduction prohibited.
|
|
eBearing.com ... for everything that moves™
Copyright 1999-2010, eBearing Inc. All rights reserved.
Copyright information is on www.copyright.com
Unauthorized reproduction is prohibited.
eBearing Inc, eBearing.com, and "... for everything that moves" are registered
trademarks of eBearing Inc.
|
|
|
|
|
| |
eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2010, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
|
|
|
