NTN Corporation (hereafter, NTN) has decided to purchase the assets of tedrive Sistemas de Chassis do Brasil Ltda. (hereafter, tedrive Brasil), the Brazilian subsidiary of tedrive Holding B.V., and establish a new company to manufacture and sell constant-velocity joints (hereafter, CVJs) to meet the rising demand for automobiles in Brazil.
1. Purpose of establishing the new company
NTN is accelerating the expansion of its business in emerging nations that include China, India, and Brazil as one of the key tasks emphasized in the company's medium-term management plan, “NTN 2010 for The Next Step.” Demand for automobiles is expected to rise sharply in Brazil, so local production of CVJs−a key automotive component−is of vital importance.
tedrive Brasil has been manufacturing and selling CVJs and steering systems in Brazil since 1997. NTN will purchase only its CVJ business assets and will establish a new company. By taking over existing assets that include land, buildings, equipment, and employees, NTN will be able to start local production more quickly than by building a new plant. NTN's goal is to quickly expand its CVJ business in Brazil.
NTN plans to strengthen its manufacturing and sales organization in South America, with a focus on Brazil, to boost its competitiveness globally with the aim of capturing the top share of the global market for CVJs. This new location in Brazil will be NTN's 18th CVJ production base, joining locations in Japan, the United States, Europe, Asia, and China.
2. Future plans
The new company will be established in June 2010 and production is scheduled to begin in June 2011, with a goal five years ahead in fiscal 2015 of sales totaling approximately 7 billion yen.
3. Outline of the new company
(1)Company name NTN do Brasil Produção de Semi-Eixos Ltda. (provisional)
(NTN of Brazil Production of Driveshaft)
(2)Line of Business Manufacture and sales of constant-velocity joints (CVJs)
(3)Paid-in capital Approx. 1.7 billion yen
(4)Ownership NTN: 70%; NTE (NTN Transmissions Europe): 30%
(5)Location Guarulhos, São Paulo, Brazil
(6)Establishment June 2010 (provisional)
(7)Sales plan Approx. 2.0 billion yen in fiscal 2011;
approx. 7.0 billion yen in fiscal 2015
(8)Employees Approx. 100 at the start provisionally
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