NTN Corporation (NTN) and Seohan, Korean company(*), have signed a contract to establish a joint venture. It will manufacture and sell bearings for wind turbine.
1. Purpose of New Company
NTN has been accelerating a business development of bearings in application for industrial machinery and aftermarket including large bearings used for wind turbine, as a priority initiative in the “NTN 2010 for the Next Step”, a new medium-term management plan. NTN has been working to reinforce production and sales structures actively, particularly in emerging countries where expansion in demand for the product is expected.
Seohan is a manufacturer of machine parts including auto parts such as constant velocity joints. It has a strong business relationship with Hyundai Group such as Hyundai Motor Company and Hyundai Heavy Industries, and now aims to establish a business of high quality large bearings used for wind turbine with Hyundai Group
The new joint venture company, which manufactures and sells bearings for wind turbine, will enable NTN and Seohan to supply high-quality large bearings to Hyundai Group and other wind turbine manufacturers in Korea.
2. Schedule
The joint venture company will be established in January 2010, and start a volume production of large bearings for wind turbine from March 2011. It expects sales to reach approximately 6 billion yen in FY 2013.
3. Outline of Joint Venture Company
(1)Company name Seohan-NTN Bearing Co., Ltd.
(2)Line of business Manufacture and sales of large bearings for wind turbine
(3)Paid-in capital Approx. 100 billion WON (approx. 7.5 billion yen)
(4)Ownership Seohan51%, NTN49%
(5)Location Geoncheon, Gyeongju, Gyeongsangbuk-do, Korea
(6)Establishment January 2010 (expected)
(7)Start of operations March 2011 (expected)
(8)Sales Approx. 81 billion WON annually (approx. 6 billion yen)
(Fiscal 2013)
(9)Employees Approx. 100 (start-up),
200(FY2013)
(*) Seohan is a collective name for Seohan Industries Co., Ltd. and Korea Flange Co., Ltd. Seohan and NTN established joint ventures in China and US; Beijing NTN-Seohan Driveshaft Co., Ltd. in 2003 (China), and Seohan-NTN Driveshaft USA Corporation in 2007 (US).
[Reference] Outline of Seohan.
Seohan Industries Co., Ltd.
Line of business Manufacture and sales of CVJs and axle units
Location Jincheon-gun, Chuncheongbuk-do, Korea
Establishment April 1996
Sales Approx. 19 billion yen
Employees Approx. 125
Korea Flange Co., Ltd.
Business lines Manufacture and sales of automotive parts including CVJ's, and flanges
Location Ulsan-gwangyeoksi, Korea
Establishment July 1974
Sales Approx. 42 billion yen
Employees Approx. 580
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