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The eBearing News
August 26, 2005
NSK Plans Further Expansions in China
copyright © 2005 eBearing Inc.
NSK Ltd. (Japan) said it will be undertaking a plant expansions
and new business ventures in China, as its position in the country
expands and target markets develop.
By 2010, NSK expects sales in China to reach ¥120 billion (USD $1.1 billion), from
its current level of approximately ¥36 billion ($325 million).
To accomplish that, NSK is investing heavily in its plants in China -- particularly in Jiangsu -- and will
be moving toward more vertically integrated manufacturing. Currently, most NSK plants
in China work with semi-finished parts produced at a central facility or imported from Japan.
The company is also becoming more aggressive in pursuing OEM automotive business in China.
Sales for the domestic Chinese automotive industry are targeted to increase from 3 million bearings
per month, to more than 5 million bearings per month by early 2006.
NSK currently sells to a number of automakers, including the Volkswagen joint venture with
Saic-Chery Automobile Company.
In addition to the manufacturing focus, NSK is also setting up a wholly-owned trading
company based in Shanghai. Eventually expanding to five locations across China's most active markets,
the trading company will not only sell NSK bearings but also import bearings and related
parts from other manufacturers in other countries.
A key aspect of the trading company is maintaining some control over its markets. Over the next
several years, NSK said it
expects its own trading company will take over all NSK-branded product sales
throughout China, consolidating not only its own network, but also largely eliminating the
unaffiliated middlemen now distributing NSK bearings in China.
The trading company will initially have approximately 130 employees in Shanghai when it
begins operating in October 2005.
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Bruce Carr edited this content.
Copyrighted material; unauthorized reproduction prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2011, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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