NSK Corporation, designers and manufacturers of various products for industrial and automotive motion and control, is establishing a subsidiary in Mexico to produce automotive bearings. NSK Bearings Manufacturing Mexico S.A. de C.V., is located in Guanajuato, Mexico, and represents an initial capital investment of $70 million for parent company NSK Ltd., Tokyo.
NSK said the decision to launch manufacturing in Mexico was prompted by its need to supply that area’s expanding automobile manufacturing segment, and to keep pace with expected growth across the NAFTA region’s automotive industry.
The 13,000-sq.m. plant, on a 100,000-sq.m. site, will start up in the spring of 2014.
NSK’s automotive bearings product line includes devices for chassis systems, drivetrains, powertrains, and steering systems. It produces bearings for automatic transmissions, hub unit bearings, electric accessory and engine bearings, electric tilt telescopic steering columns, electric power steering systems, and various bearing systems for automotive aftermarkets.
The NSK Automotive business unit is headquartered in Ann Arbor, Mich., and it has manufacturing plants in Bennington, Vt., and Dyersburg, Tenn.
NSK also produces industrial bearing products for markets ranging from agriculture, construction, electric motors, and machine tools, to rolling mills, power transmissions and gearboxes, utilities, and many others.
“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,” according to a statement.
By establishing this subsidiary and increasing bearing products capacity in the region, NSK said it aims to strengthen its ability to deal with exchange-rate fluctuations, as well as to expand its business in North America.