NTN Corporation (hereafter, NTN) hereby announces that it has decided to begin mass-production of automotive products at its new company in Mexico, “NTN MANUFACTURING DE MEXICO, S.A.DE C.V. (hereafter, NTN Manufacturing de Mexico).
Purpose of establishing the new company
NTN is aiming to reform its business structure to generate profit as part of its two-year medium-term management plan “Revival 2014” that began in April 2013. By establishing a structure that is not affected by exchange rates based on the “on local site with local materials by local personnel” concept, NTN aims to expand business in growth markets.
Mexico is one of the largest automobile producing countries in the world, and further growth is anticipated as automobile manufacturers from around the world have been expanding into the country in recent years. By strengthening its local production system, NTN will be able to meet increasing demand in the Mexican market.
NTN has established manufacturing bases for automotive products throughout the Americas in America, Canada and Brazil, and produces hub bearings and constant velocity joints (hereafter, CVJ). In Mexico, NTN established NTN Manufacturing de Mexico in 2013 and has been examining specific plans for mass-production. NTN Mexico Manufacturing will meet demand for hub bearings and CVJ in Mexico for the time being, however will utilize free trade agreements (FTA) into the future to operate as a supply base for all of North America as part of risk dispersion and equalization of production load.
Future plans
Construction work will begin in May 2014, with plans to begin mass-production from FY2015.
There will be approximately 100 employees to start with, with plans to gradually increase numbers to approximately 300.
Sales of approximately 20 billion yen are planned for FY2018.
Overview of the new company
Hub bearings
Hub bearings play a critical role in how a vehicle runs. They are attached to a vehicle’s wheels and make it possible for the wheels to turn while bearing the weight of the chassis.
Hub bearings are becoming more and more unitized, with the number of parts decreasing from the first generation to the third (GEN3). This has resulted in lightweight, compact products that help to improve fuel consumption.
CVJ
A CVJ is a part that transmits the power of an automobile engine’s rotation smoothly and constantly to the vehicle’s tires, and is always used in front-wheel drive and four-wheel drive vehicles. The CVJ is a key part that greatly affects a vehicle’s fuel consumption and the quietness and comfort of the ride. These aspects of automotive performance are constantly in high demand.
In addition to automobile driveshafts, CVJs are also widely used for propeller shafts and steering shafts.
