NSK and NTN, two of Japan's largest bearing manufacturers, are merging to create the world's largest bearing firm, surpassing Sweden's SKF in revenue.
The unprecedented union of these century-old rivals, who have been fierce competitors for over 100 years, is driven by the aggressive price war waged by Chinese bearing companies.
Where It All Begins
NSK, founded in 1914 and headquartered in Tokyo, achieved Japan's first mass production of domestic bearings in 1916. NTN, founded in 1918, traces its origins to the Nishizono Iron Works in Mie Prefecture, using the NTN trademark since 1923 and based in Osaka. Both are pioneers in the Japanese bearing industry and have now decided to join forces.
Under a memorandum signed on May 12, the companies will create a holding company via a common share transfer, with NSK and NTN becoming wholly owned subsidiaries. The integration is targeted for completion by October 2027. The new CEO will be NSK President Akiyoshi Ichii, with NTN President Akira Ugai serving as deputy CEO.
Product Synergy and Strategic Goals
The two companies have highly complementary product lines. NSK excels in small precision bearings and linear motion products used in semiconductor manufacturing equipment and machine tool positioning. NTN is a global leader in large drive products and automotive driveshafts, making it one of the world's largest driveshaft manufacturers. The merger will enable synergies in joint material procurement, production base consolidation, and streamlining redundant operations. President Ichii stated, "To maintain international competitiveness, we must push forward with industry restructuring."
Why Just Two Japanese Bearings Giants?
The real catalyst for this merger is the rise of Chinese bearing firms. Senior Analyst Yoshiki Sasaki from UBS Securities noted that Chinese companies demonstrate "overwhelming momentum and price-destroying power" through exceptional speed in design, prototyping, development, verification, and customer proposals. Both Japanese companies have reached their limits in pursuing structural reforms independently. The commoditization of their core product, automotive bearings, has trapped them in price competition, leading to persistently low profitability. President Ichii admitted at a May press conference, "What we lack in strengthening international competitiveness is speed." He emphasized the need to fully leverage the combined business foundation and resources of both companies.
Post-merger priorities include consolidating production bases, streamlining duplicate organizations, and entering new markets such as robots and machinery equipped with physical AI. Failure to move quickly risks losing these opportunities to Chinese competitors once again.
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