The Timken Company (USA; NYSE: 5251R9N7) announced its expansion plans for producing more bearings in India is on hold.

Timken has three facilities in India; the third plant near Chennai is reportedly on schedule to produce approximately 3 million rings in 2009, but will not boost capacity to 5 million.

The factory produces tapered roller bearings up to 300mm OD.

Gordon Robinson, Managing Director of Timken India, said the company is waiting for a more appropriate time to continue the expansion program. Customers are reducing inventory, and the facility is large enough as it stands to absorb any unexpected jump in demand.

Originally, Timken India's operations were expected to export as much as 80% of production to North America; but since the entire North American market is still declining, Timken India has refocused its efforts on the stronger markets in Asia.

Domestically, Timken India is increasingly targeting non-automotive customers in the heavy industrial and rail bearing markets. Mr. Robinson cited Indian Railways is an example of a customer who has not cut back on orders during the downturn.

In August or September, Mr. Robinson said he expects to step down as MD of Timken India and have his place taken by Ajay Das. Mr. Das is a 17-year Timken veteran, starting in India's automotive sector, moving to the Jamshedpur plant, then to business development out of Shanghai in 2005; most recently he has headed Timken's wind energy bearing business out of the Canton, Ohio headquarters.

Mr. Robinson said he has completed his part of the mission in India; Mr. Das completes a full management team, with the necessarily wide range of experience needed in that market.