NTN Corp. said Friday it will set up a subsidiary in China in August to produce components for constant-velocity joints for use in cars.
Shanghai NTN Corp. will be launched with startup capital of $20 million (2.34 billion yen). It will be owned 95 percent by the Osaka-based bearing maker and the remaining 5 percent will be held by Okaya & Co., a Nagoya-based trading firm specializing in steel products.
NTN will also invest 600 million yen for the construction of a factory to be run by the Shanghai unit, which expects to post 400 million yen in sales in 2003 and 3 billion yen in 2005, the company said. The factory, NTN's first production facility in China, will start operating next June, it said.