GSA Daily Staff Report
Published Jan. 5, 2010

JTEKT Corp. has created a new business unit, Koyo Bearings USA LLC, following the acquisition of The Timken Co.'s Needle Roller Bearings business. The new business unit will include former Timken assets in Greenville and Walhalla, S.C. that were sold to JTEKT.

Koyo Bearings will manufacture needle roller bearings under the Koyo Torrington Needle Roller Bearings brand, which features a range of radial and thrust needle roller bearings, as well as bearing assemblies and loose needles for automotive and industrial applications. The entire management team and its 3,400 employees will transition into the new business unit. Timken's former president of needle roller bearings, Ken Hopkins, has been named president and chief operating officer of Koyo Bearings USA, which will manage the global business unit.

"The creation of Koyo Bearings USA will lift JTEKT to a new level, giving us an extensive global footprint with operations in North America, Europe and Asia," said Tom Takahashi, CEO, Koyo Bearings USA LLC. "The combination of the Koyo and Torrington Needle Roller Bearings brands also brings significant automotive expertise, the world's leading automotive bearings manufacturing capabilities, and provides Koyo cutting-edge products and technology."

This $330 million transaction, including receivables retained by the seller, complements and strengthens JTEKT's existing product lineup and manufacturing base, JTEKT said in its announcement today. Koyo Bearings USA will provide JTEKT with a global production network of 12 needle roller bearings manufacturing facilities and three engineering technology centers located in:

-- North America: Cairo, Dahlonega and Sylvania, Ga.; Greenville and Walhalla, S.C.; and Bedford, Quebec, Canada

-- Europe: Brno and Olomouc, Czech Republic; Maromme, Moult, and Vierzon, France; Kunsebeck, Germany (two); and Bilbao, Spain

-- Asia: Wuxi (LiYuan), China

"JTEKT is committed to becoming a global leader in the development and manufacturing of needle roller bearings for the automotive industry, as well as in other important industries such as aerospace and industrial," said Ken Hopkins, president and COO, Koyo Bearings USA. "Their strong investment in this new organization will allow Koyo Bearings USA to continue to offer innovative, high-quality products as efficiently as possible, and we are excited for the opportunities that lie ahead for our employees and customers."

Koyo Bearings USA will be based in Canton, Ohio. Its customer base is primarily original equipment and Tier 1 automotive manufacturers in North America, Europe and Asia. In 2008, the business unit had annual sales of $621 million.