MRO Magazine

NSK to establish manufacturing subsidiary in Mexico

Ann Arbor, MI – Bearing manufacturer NSK Corp. says it will 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...


Industry

January 31, 2013
By MRO Magazine


Industries

Ann Arbor, MI – Bearing manufacturer NSK Corp. says it will 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 the subsidiary, NSK will be better positioned to provide products such as automotive bearings in a timely manner. It will also give NSK increased capacity in addition to its existing plants in the US in supporting its 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.

The new 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 Corp. 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 investment amount for the plant is approximately $70 million USD.

The size of the plant site area is approximately 100,000 square metres, with building floor space of approximately 13,000 square metres planned at the initial stage. Commencement of operations is planned for spring 2014.

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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 US 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, MI, for the manufacturing and sales of its products. NSK currently has eight manufacturing sites and 20 sales offices in the Americas. The company’s Canadian operation, NSK Canada, is based in Mississauga, ON, where it supplies certain products exclusive to the local market, including the Nexen profile rail brake; Oilite bearings; Precision Linear Components (PLC) inch and metric linear ball bushings and 60 HRC shafting; and Translide linear motion bearings.

NSK’s sales in the Americas at the end of March 2012 totalled 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.