2014
Aug.28, 2014
Minebea Co., Ltd.
Minebea Launches Ball Bearing Joint Venture in China
Minebea Co., Ltd. ("Minebea") announced today that its Chinese subsidiary, Minebea Electronics & Hi-Tech Components (Shanghai) Ltd. ("MEHC"), established a ball bearing manufacturing and sales company in China's Zhejiang Province jointly with a Chinese precision bearing manufacturer, Ningbo WT Bearing Co., Ltd. ("WT", President: Xu Ai Mei, Location: Cixi City, Zhejiang Province, China). The new joint venture company is slated to start operating in early October of this year.
1. Purpose for Establishing the Joint Venture
WT is a ball bearing manufacturer established in July 1999. It manufactures medium-quality ball bearings and related products using equipment, materials, and parts made in China.
WT specializes in manufacturing miniature and small-sized bearings. It also offers a wide range of other products, including medium-sized bearings, which do not overlap with Minebea's product lines thereby synergy effects are expected for both companies by their collaboration. The purpose of establishing the JV Company is to marry WT's technological capability with the integrated strengths of Minebea's global operations, which gives the new joint venture a leg up in supplying WT brand bearings to grow its market shares by cultivating new market within China.
2. Outline of the Joint Venture and Outlook for the Future
Employing WT's workforce as well as utilizing existing facilities, machinery and equipment that are currently up and running, the new company is scheduled to start operations in early October 2014. MEHC will invest 137,700,000 yuan in cash while WT will make an in-kind contribution of machinery and equipment worth 45,900,000 yuan. (An operating license for the new company was obtained on July 10, 2014.)
Minebea aims to enhance its presence in the Chinese market by expanding its lineup of bearings including WT brand bearings as the new joint venture is aiming to reach 10 billion yen in net sales over the next five years.
Outline of the new JV Company
(As of its proposed commencement date of operation: October 2014)
| Company name | Cixi New WT Bearing Co., Ltd. |
|---|---|
| Location | 328 Sheng Shan Da Dao Xi Lu Cixi Shi, Ningbo Shi, Zhejiang Sheng, China |
| Representative | Koichi Takeshita (President and CEO of MEHC) |
| Proposed commencement date of operation | Early October 2014 |
| Registered capital | 183,600,000 Chinese Yuan |
| Shareholding ratio | Minebea 75% , Ningbo WT Bearing 25% |
| Principal business line | Manufacture and sales of bearings and related products |
| Number of employees | 377 (forecast number as of October 2014) |
(Reference) Overview of JV partner
(As of June 30, 2014)
| Company name | Ningbo WT Bearing Co., Ltd. |
|---|---|
| Location | 328 Sheng Shan Da Dao Xi Lu Cixi Shi, Ningbo Shi, Zhejiang Sheng, China |
| Establishment | July 5,1999 |
| Representative | Xu Ai Mei (President and CEO) |
| Registered capital | US$510,000 |
| Principal business line | Manufacture and sales of bearings and related products |
| Number of employees | 377 (as of June 30, 2014) |
| Annual Production | 4,6750,000 units (fiscal year ended March 2013) |
| Annual Sales | 83,680,000 Chinese Yuan (fiscal year ended March 2013) |
| Company Name: | Minebea Co., Ltd. |
|---|---|
| Representative: | Yoshihisa Kainuma Representative Director, President and Chief Executive Officer (Code No. 6479, TSE Div. No.1) |
| Contact: | Yasuo Komine General Manager Corporate Communications Office |
| Phone: | +81-(0)3-6758-6703 |
Product information, contact and other context are subject to change without prior notice.
