NTN Corp. (6472), a Japanese maker of bearings for cars and industrial gear, expects sales of the devices used in wind-power generators to exceed target after the Fukushima disaster spurred demand for alternative energy sources.
NTN may reach its revenue target for the specialized bearings six months or a year earlier than previously estimated, Shigeyoshi Takagi, president of the Osaka-based company, said in an interview this week. The company had expected the segment to rise six-fold in the three years ending March 2014, he said, declining to give specific figures.
Meltdowns caused by damage from the March 11 tsunami at Tokyo Electric Power Co.’s Dai-ichi plant in Fukushima threw Japan’s energy industry into disarray, prompting opposition to providers’ plans to restart idle reactors. Tokyo Electric and its next-biggest rival Kansai Electric Power Co., which serves the Osaka area, asked users to cut electricity consumption by 15 percent over the peak summer demand period as they worked to restore capacity.
“Attention is focused on clean energy sources after the accident,” Takagi, 60, said. “Local governments in Japan may accelerate moves to develop independent infrastructure for renewable energy.”
Revenue from NTN’s industry machinery division, which includes bearings for wind-power devices and aviation equipment, accounts for about one-fifth of sales and may rise 45 percent to 144.5 billion yen ($1.88 billion) in three years, according to a mid-term management plan announced Aug. 1. Most of the company’s revenue is generated by bearings sold to automakers, including Honda Motor Co.
French Wind Power
Demand for bearings for wind-power equipment may help increase the proportion of NTN’s domestic sales to as much as 25 percent, up from 20 percent, Takagi said. Overseas demand, which fell sharply after the recession triggered by the collapse of Lehman Brothers Holding Inc., started recovering last year, he said.
NTN said last week it will invest 15 billion yen to build a bearing plant in Nanjing, China to meet demand for bearings for wind-power generators. It also plans to boost its production capacity for large-sized bearings in 2013 in France, where there are plans to build a wind-power plants in the ocean.
Takagi said even France, where more than 75 percent of electric power is generated by nuclear plants, may start boosting the proportion of renewable energy soon.
“The consequences of the Fukushima disaster are being felt by people worldwide,” he said.
NTN shares, down 10 percent this year compared with a 14 percent decline in the benchmark Topix Index, fell 1.8 percent to 386 yen as of the 11 a.m. morning close on the Tokyo Stock Exchange.
To contact the reporter on this story: Masatsugu Horie in Osaka at firstname.lastname@example.org
To contact the editor responsible for this story: Drew Gibson in Osaka at email@example.com