NSK Ltd. (Japan; TSE:NSK; 5251R9N7) has revealed more about the extent of its strategic push into China.

The company has already said that, with a foothold and a major manufacturing base in the country, it wants to increase its market penetration in the country from 10% to as high as 30% within the next five years.

NSK has now taken another key step in that direction by opening its latest, most advanced, and most encompassing R&D center: NSK China Research and Development, in Suzhou Huaqiao Economic Development Zone, Kunshan City, Jiangsu Province. This is the company's largest R&D center outside Japan.

The Kunshan City location had already been established as the headquarters for NSK's operations in China, and is the center of its USD $100 million investment commitment. NSK currently operates nine manufacturing facilities in China.

NSK said it is now on track in China to, "expand its functions for production, marketing, IT and finance, in order to pursue a unified strategy aiming to further expand NSK's business in China."

The company went on to say it, "is now positioned to offer a full range of technical support services in China for the entire NSK product lineup, covering everything from industrial machinery bearings and automotive products to precision machinery and parts."

Engineering staff will be built up around the specific requirements of the entire Chinese market, and each key industry sector it plans to target. Technical staff will also be in place for testing and evaluation, while local design services will allow NSK to speed up its customer response, and provide better technical support to its marketing staff. Another key focus will be to strengthen R&D and technical support for products in demand from China's state mandated push toward environmentally friendly energy infrastructure projects, such as wind power.

The NSK China operation is not only building its own internal supply chain infrastructure, but is also working with cost-effective local vendors.

Going forward, target customers will still be Japanese companies with operations in China, and it will also target adding new customers and markets in northeast and inland China's manufacturing corridor.

Earlier this year, NSK announced it is building a massive new greenfield manufacturing facility in Shenyang, budgeted at ¥7 billion. Set to come online by mid-2010, it will produce high-precision bearings, ball screws, and linear guides. article: NSK building precision components plant in China
At the official opening of the R&D center, NSK President and CEO Norio Otsuka said: "NSK's business in China has grown at a rapid pace in recent years, and our China business continues to increase in significance to the NSK Group as a whole. By establishing an independent framework for technical services in China, NSK strengthens its ability to provide intangibles in the form of technical support. This in turn will improve the level of services that we can provide to our customers, by actually seeing things up close, while enhancing our ability to pursue a multifaceted approach to sales. With the relocation of NSK China, we will focus on enhancing our business management framework, so that we can execute a unified growth strategy through the collaborative effort of our production, marketing, and technical wings."