37 - NSK at Peterlee: A Successful Japanese Manufacturing Investment in the UK

Summary

THIS CHAPTER is based on a detailed memoir produced in 2002 by Japanese members of NSK who devoted much of their lives to initiating and developing NSK's investment at Peterlee in County Durham. I have also drawn on a draft account of this investment begun before his death by my old friend the late Mr Sukeyoshi Yamamoto OBE who had such a close involvement with this project.I wish to thank all those at NSK who contributed to this history, in particular Mr Takao Kieda who edited the memoir and checked this summary. I also wish to put on record my appreciation for the friendship extended to me and to other former British officials by the late Mr Toshio Arata KBE, who served in so many capacities in NSK including that of Chairman and President and who, like Mr Sukeyoshi Yamamoto, was such a good friend of Britain.

INTRODUCTION

NSK (Nippon Seiko) was formed in 1914 and started to manufacture bearings in Japan in 1916. The company was revived after the end of the Pacific War. Mr Hiroki Imasato became President in 1948. Under a technical collaboration agreement with a British company, a joint venture company NSK Torrington was set up in 1963 to manufacture needle roller bearings. NSK quickly developed export markets for its products and marketing companies were established in various overseas markets including the USA and Europe. NSK became the leading Japanese manufacturer of bearings surpassing its Japanese competitors, such as NTN and Koyo, to become after SKF the second largest manufacture of bearings in the world. Its growth was in large part due to its manufacturing technology, the quality of its products and its production capacity.

NSK's first overseas plant started production of small size ball bearings in Australia in 1970. In 1972 a plant was opened in Brazil. In 1975 a joint venture with Hoover Ball Bearing Company in the USA began the production of standard size bearings at Clarinda in Iowa. The NSK plant at Peterlee began production in Britain in 1976.

NSK was the sixth Japanese company to invest in manufacturing facilities in Britain. It was the first in the North East of England, and the second after YKK, to establish comprehensive production facilities in contrast to simple assembly. (Later, over forty Japanese companies built plants in the North East area of the UK.)