Information  X 
Enter a valid email address

THK Co Ltd (47WH)


Wednesday 24 March, 2004

THK Co Ltd

New Production Facility

THK Company Limited
24 March 2004

Contact Kotaro Yoshihara
Director/General Manager
Corporate Strategy Department
Phone: +81-(0)3-5434-0300

(Press Release)                                                   March 24, 2004

     Notice Regarding the Construction of New Production Facility in China

As part of THK's efforts to improve its overseas production bases and to enhance
its supply system for the ever-expanding Asian market, the Company announced the
construction of China's first LM (linear motion) Guide production plant in Wuxi,
Jiangsu Province.

THK currently maintains six overseas production facilities in three continents.
LM Guides are manufactured in the United States, France, and South Korea
(investment into 'SAMICK LMS CO., LTD.') while Ball Screws are manufactured in
England, Ireland, and China (Dalian). The new facility will join the rest as the
seventh overseas production base for the Company.

Specifically, THK MANUFACTURING OF CHINA WUXI CO., LTD. will be established as a
fully owned subsidiary of THK CO., LTD on March 23, 2004. Recently, the Company
finalized a property transfer agreement with Wuxi City for an approximate
155,000m2 plot of land. The first phase of the construction process entails the
building of an estimated 13,000m2 manufacturing facility. Construction is
anticipated to begin in the end of April and be completed by November of this
year. The target date to begin shipments is the beginning of 2005.

The facility will manufacture mass-production type LM Guides, which are mainly
HSR, with the goal to ship approximately /1 billion worth of products in the
first year (2005). There are also plans to gradually begin manufacturing Link
Balls as the Chinese automobile market expands significantly. The ultimate goal
is for the facility to ship /10 billion worth of products annually.

In addition, along with the completion of the second phase of construction at
DALIAN THK CO., LTD., the Company has decided to increase its overall investment
into the firm from US$30 million to US$45 million. As a result, the DALIAN THK
CO., LTD. is making preparations to begin mass production of Ball Screws.
Moreover, the THK sales company established in China last year is now fully
operational. Through all of these activities, the Company is making further
improvements to its production and sales structures in China.

Company Name:

President and     Akihiro Teramachi


Capital:          US$30 million

Location:         Wuxi City, Jiangsu Province, China

Property Size:    Approximately 155,000m2

Building Size:    Approximately 13,000m2 initially (60,000m2 upon full 

Production Items: LM Guides (HSR type, etc.), Link Balls

Initial           US$20 million


Overall           US$90 million

                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                                                                                         

a d v e r t i s e m e n t