ANN ARBOR, Michigan, January 9, 2013 – NSK announced today that the company would establish a manufacturing subsidiary in Mexico, as outlined below.
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.
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.