Entreprise - 2012-06-15
Aiming to Further Expand Industrial Machinery Business in China
NSK President and CEO: Norio Otsuka held an opening ceremony for Shenyang NSK Precision Co., Ltd., a precision machinery plant producing ball screws, and Shenyang NSK Co., Ltd., the first plant outside of Japan producing large size bearings, on May 28, 2012 in Shenyang, Liaoning Province, China.
NSK has expanded production with new facilities for Shenyang NSK Precision Co., Ltd., and its adjacent Shenyang NSK Co., Ltd. in Shenyang, the largest industrial city in Northeast China which the Chinese government has been intensively developing in the last few years. Both facilities will allow NSK to provide products in a timely manner and in response to the rapidly increasing demand in China.
The opening ceremony was held on a grand scale, welcoming corporate customers from Japan, the United States and Europe, as well as dignitaries from China's central government, the province of Liaoning and the city of Shenyang. NSK President and CEO Norio Otsuka said "Within just two and a half years from the groundbreaking ceremony of Shenyang NSK Precision Co., Ltd in October 2009, we have completed two newly equipped production facilities. We can now produce state of the art high-performance products using leading manufacturing technologies and product technology for China's growing industrial machinery market."
NSK is also taking advantage of its strengths as the world's only producer that manufactures and develops industrial machinery bearings and precision parts to further enhance synergy of both products in China. NSK is focusing on the demand for heavy industry in China, on accelerating sales for industrial machinery business and on further expanding business in China in parallel with the growing business of automotive products such as automotive bearings and steering products. In addition, NSK plans to solidify their growth strategy to double sales in China to over twice the current amount to 200 billion yen by NSK's centenary in 2016.
1.Background and objectives of both plant openings:
In the high economic growth region China:
1) Respond to increasing demand for large size bearings for the industrial machinery market in terms of infrastructure, environment and resources.
2) Respond to increasing demand for ball screws for China's machine tool market, the global number one producing country for machine tools.
3) Respond to the needs of cost competitiveness, short delivery times, quality assurance, risk avoidance of exchange rate fluctuations and meet the requirements of domestic production in China through local production.
2. Overview of the new production facilities:
1) SHENYANG NSK PRECISION CO., LTD
(1) Representative: TAKANAO MIKI -President (President of NSK KYUSHU Co., Ltd.)
(2) Address: No.7,15 Street, Shenyang Economic & Technological Development Area, Shenyang, Liaoning, China
(3) Date of establishment: August 2009
(4) Business areas: Manufacture and sales of precision machinery products
(5) Number of employees: Approximately 200
(6) Capital: US $35 million.
(7) Investment breakdown: 100% from NSK
(8) Plant size: Site area: Approximately 70,000㎡, Building area: Approximately 36,000㎡
(9) Start of operation: Production started in December 2010
(10) Investment: 7 billion yen
2) SHENYANG NSK CO., LTD
(1) Representative: TOSHIHIDE SHIMBO- President (Director and Executive Vice President of NSK Ltd.)
(2) Address: No.5,15 Street, Shenyang Economic & Technological Development Area, Shenyang, Liaoning, China
(3) Date of establishment: August 2010
(4) Business areas: Manufacture and sales of large size bearings
(5) Number of employees: Approximately 300
(6) Capital: US $29.4 million
(7) Investment breakdown: 100% from NSK
(8) Plant size: Site area: Approximately 80,000㎡, Building area: Approximately 20,000㎡
(9) Start of operation: Production started in January 2012
(10) Investment: Approximately 10 billion yen
3. About NSK's business in China
Since the 1960's, NSK Ltd. has been aggressively developing its overseas markets. NSK currently operates production facilities in 13 countries worldwide at 62 locations. NSK has been ahead of the competition in China for over 40 years, providing technical assistance for state-run business. It has expanded its production base from the coast to northeastern China and to inland China to 12 production sites. The opening of a large size bearings plant and a precision machinery plant for ball screws allows NSK to provide a full product lineup such as industrial machinery bearings, automotive related parts, and precision machinery products in China. It also enables NSK to provide its high quality products stably in a timely manner. 20 sales locations cover the whole of China, and Technical Service Centers provide service on the full range of NSK products in China. NSK is further improving co-ordination between production, sales, and technology, as well as further developing business in China as a true insider. NSK is already number one in both market share and brand recognition in the bearings market in China. By utilizing local materials and human resources and by expanding the truly local production, NSK is responding to the needs of the Chinese market and aims to attain the absolute number one market share in China.
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