NTN Bearing Corporation of America (NBCA or NTN-BCA, a division of NTN Corp., Japan; TSE: Tokyo:5251R9N7) announced it will close the NTN-BCA bearing manufacturing facility in Lititz, Pennsylvania by March 2010.

Approximately 135 people will be unemployed as a result.

Built by Federal-Mogul's BCA Bearings division in 1987 to replace an aging facility on Harrisburg Avenue, Lititz manufactures standard and specialty sizes of ball and needle roller bearings, clutch release bearings, specialty agricultural bearings, and roller rocker arms for gas and diesel engine applications.

Federal-Mogul sold off its BCA Bearings division to NTN in 1996.

Production and employment at Lititz have been falling since the 1990's when the plant employed over 400 and ran multiple shifts. As production fell, costs began to rise as the plant's high fixed overhead costs had to be spread across fewer bearings.

The plant's end markets are primarily automotive, construction equipment, and agricultural equipment applications. Unfortunately, the bearings are now low-volume, high-cost competitors in an increasingly cost-sensitive and volume-driven end of the industry. In addition, the ongoing recession has crimped demand from all of those sectors.

NTN-BCA called the move a competitive necessity; production of most items will be moved to the NTN-Bower factory in Macomb, Illinois, which has also been operating far below capacity.

General Manager John Cardos said: "NTN-BCA's associates have worked very hard for many years in the face of declining markets. The economic implosion of 2008 was the final straw after many years of financial stress." Mr. Cardos went on to comment that the facility has been operating at less than 40% capacity.

The site of the original F-M facility in Lititz is now under redevelopment, and NTN hopes it will be able to do the same with this 278,000 square foot facility on nearly 25 acres.