ABC Bearings signs an agreement with NSK

ABC Bearings Ltd has announced that the Company has signed an agreement with NSK Ltd, Japan, on March 06, 2007, to form a Joint Venture Company to manufacture bearings for the automotive industry, targeting mainly Japanese and other transplant customers.

The profile of the JV Company is as follows:

1. Company Name: NSK-ABC Bearings Ltd.

2. Capital: 500 million Rupees (1.3 billion Yen)

3. Ratio of Capital Contribution: NSK: 75% & ABC: 25%

4. Location: Kancheepuram District, Tamil Nadu, India

5. Land Area: 80,000 square meters

6. Building Area: 7,000 square meters

7. Starting Production: January 2008

8. Business Plan: Production of bearings (HUB unit bearing, bearings for transmission, bearings for magnetic clutch, etc.)

9. Investment: - 500 million Rupees (1.3 billion Yen) for the initial stage; - 800 million Rupees (2.0 billion Yen) by the year 2010.

Source : Equity Bulls

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