The Timken Company (USA; NYSE: TKR; 5251R9N7) has completed the sale of its former Torrington needle roller bearing operations to JTEKT (Japan), parent of Koyo Corp. of USA. Timken received approximately $330 million, plus receivables, from JTEKT.

After acquiring Torrington from Ingersoll-Rand for $880 million in 2003, Timken gradually divested several of its non-core operations. But Timken's recent strategic move away from its traditional dependence on the North American auto industry also left Torrington as a poor fit going forward.

article: Timken will divest Torrington
The new company, formed with just former Torrington assets, is named Koyo Bearings USA. None of the Torrington facilities or operations have been changed; it will continue to operate 12 plants and 3 engineering technology centers in Georgia (Cairo, Dahlonega, Sylvania), South Carolina (Greenville, Walhalla), Canada (Bedford, Quebec), France (Maromme, Moult, Vierzon), Spain (Bilbao), China (Wuxi), Germany (Kunsebeck), and the Czech Republic (Brno, Olomouc). JTEKT said the entire former Timken management team and all 3,400 employees have transitioned to the new company.

Ken Hopkins has been named President and COO of Koyo Bearings USA. Mr. Hopkins headed up the Torrington operations for Timken. The new company's headquarters is in the Belden Village area, not far from Timken's headquarters.

Koyo Bearings USA will continue to use the Torrington brand, manufacturing bearings under the Koyo Torrington Needle Roller Bearing brand. The product line includes radial and thrust needle roller bearings, loose rollers, and assemblies. The company's primary market is OEM automotive and light truck, but also includes a range of industrial applications.

Tom Takahashi, CEO of Koyo Bearings USA, said: "The creation of Koyo Bearings USA will lift JTEKT to a new level, giving us an extensive global footprint with operations in North America, Europe, and Asia. The combination of the Koyo and Torrington Needle Roller Bearings brands also brings significant automotive expertise, the world's leading automotive bearing manufacturing capabilities, and provides Koyo cutting-edge products and technology."

Mr. Hopkins said: "JTEKT is committed to becoming a global leader in the development and manufacturing of needle roller bearings for the automotive industry, as well as in other important industries such as aerospace and industrial. Their strong investment in this new organization will allow Koyo Bearings USA to continue to offer innovative, high-quality products as efficiently as possible, and we are excited for the opportunities that lie ahead for our employees and customers."