NSK Announces Plans to Establish a Manufacturing Subsidiary in Mexico

    NSK Announces Plans to Establish a Manufacturing Subsidiary in Mexico

PR Newswire

ANN ARBOR, Mich., Jan. 10, 2013

ANN ARBOR, Mich., Jan. 10, 2013 /PRNewswire/ --NSK announced today that the
company would establish a manufacturing subsidiary in Mexico, as outlined
below.

(Photo: http://photos.prnewswire.com/prnh/20130110/DE40820 )

NSK has decided to establish a manufacturing subsidiary in Mexico in order to
better deal with the expansion of automobile production in Mexico, and in
order to keep up with expected growth in the automotive segment among the
North American Free Trade Agreement (NAFTA) countries of the United States,
Canada and Mexico.

Through the establishment of this subsidiary, NSK will be better positioned to
provide quality products such as automotive bearings in a timely manner. It
will also give NSK increased capacity in addition to its existing plants in
the U.S. in supporting NSK's plans to expand its North American automotive
businesses. By increasing the production capacity of automotive bearings in
the Americas, including Mexico, NSK aims to build a stronger corporate ability
to deal with exchange rate fluctuations, as well as to further expand its
business in North America.

Overview of the manufacturing subsidiary
The company will be called NSK Bearings Manufacturing Mexico S.A. de C.V., and
will be located in Guanajuato, Mexico. It will be represented by Steven
Beckman, Senior Vice President of NSK Corporation. Date of establishment is
planned for January 2013, and its business areas will focus on the manufacture
and sale of automotive bearings. Its capital is approximately $5 million USD
(as of April 2013), and its investment breakdown is 100% NSK Ltd.

The size of the plant site area is approximately 100,000 m2, with building
floor space of approximately 13,000 m2 planned at the initial stage.
Commencement of operations is planned for spring 2014. Investment amount is
approximately $70 million USD.

Future Outlook
NSK does not expect any significant impact on its consolidated financial
results in the current fiscal year as a result of establishing the subsidiary.

History of NSK in the Americas
NSK began proactively entering international markets back in the 1960s. The
NSK Group currently has global manufacturing sites in operation at 63
locations in 13 countries. Specific to the Americas, including South America,
NSK established a sales office in the U.S. in 1962, and a plant in San Paulo,
Brazil in 1970, NSK's first plant outside of Japan. In 1973, NSK established a
joint venture in Ann Arbor, Michigan for the manufacturing and sales of its
products. NSK currently has eight manufacturing sites and 20 sales offices in
the Americas. NSK's sales in the Americas at the end of March 2012 totaled
86.3 billion yen.

In Mexico, NSK produced seat belts in Tijuana, Mexico from 1990 to 2000. Also
in 1990, NSK established NSK Bearings Mexico as a distributor with two sales
locations, in Mexico City and Monterrey, for the sales of such products as
automobile-related products and bearings for industrial machinery.

The manufacturing site being newly established in Mexico this time will be
focused on the production of automotive bearings. This site will improve NSK's
supply power and cost competitiveness in the automotive business in the
Americas, and enable NSK to provide superior quality products in a timely and
stable manner. NSK will continue to answer local market needs by expanding
true local production to expand its automotive business on a global level.

About NSK
Established in 1916 and headquartered in Tokyo, Japan, NSK is a world-class
manufacturer of motion and control products, leading the industry with
superior quality, engineering research and technical innovation. NSK produces
and distributes a wide range of rolling element bearings, linear motion and
automotive component products for a variety of applications.

Operating in the Americas, NSK Corporation is a member of the NSK Ltd. group
and is headquartered in Ann Arbor, Michigan. NSK Corporation has a network of
sales and engineering teams working in partnership with customers to deliver
high-performance products, application-specific solutions, superior technical
support and exceptional service to the Americas market. The company's
strategically located manufacturing and distribution centers supply both
original equipment manufacturers and the industrial aftermarket through a
broad distribution network.

For more information, visit www.nskamericas.com.

SOURCE NSK

Website: http://www.nskamericas.com
Contact: Joanna Eliopoulos, Communications Specialist, 5th business®,
+1-905-275-2220 ext. 426, joanna.eliopoulos@5thbusiness.com
 
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