NSK Ltd. (Japan; TSE1: 6471 has opened the latest expansion to its manufacturing facilities in Thailand, expanding automotive bearing production.

The 506 million baht (USD $16.8 million) project began in early 2006, with the target of raising production capacity from a tightly constrained 10-11 million sets per year up to the current 18 million pieces per year.

To accomplish the output expansion at the plant in Chonburi, there are now 30 production lines in place. It is not all organic growth, however; some of the equipment was transferred in from plants in Japan.

The Thai facility produces wheel bearings, wheel bearing hub assembly units, and water pump bearings.

The last major expansion at Chonburi was in 2003-2004 when NSK won a major contract to supply Toyota Hilux wheel bearings. At the time, NSK invested more than $9.3 million to more than triple capacity from 3-4 million sets per year to 10-11 million sets per year.

article: NSK expanding Thai facility to meet Toyota demand

Chonburi is also the target of a NSK's worldwide expansion effort to greatly increase production of wheel bearing hub assembly units, particularly the more advanced HUB III units. The company set a target of doubling worldwide hub bearing capacity between 2004 and 2008.

Thailand is also home to one of NSK's satellite technical centers.

The Chonburi plant currently has sales of approximately 3.1 billion baht ($103 million) getting approximately 82% of its sales from customers in Thailand, primarily automotive OEMs. The remaining 18% is exported, both to ASEAN countries and the Americas.