Notice Regarding Production Restructuring of Extra-Large Size Bearings for Applications such as Main Shaft of Wind Turbines

NTN Corporation (hereafter, NTN) announces that we have decided to restructure domestic production structure of extra-large size bearings as a part of the business structural reform and consolidate production functions of NTN Houdatsushimizu Corporation (Hakui-gun, Ishikawa Prefecture, hereafter, NTN Houdatsushimizu Corp.) into Kuwana Works (Kuwana City, Mie Prefecture) of NTN. We are undertaking the transformation of business structure aiming for sustainable business grows and improvements in profitability through the Medium-term Management Plan “DRIVE NTN100” Final which was started in FY2024. In addition to various initiatives such as restructuring the supply chain through reviewing designs and materials, we are restructuring our production sites in various regions both in Japan and overseas to optimize our production structure for greater flexibility in responding to changes in the business environment. We have manufactured extra-large size bearings in Kuwana Works and NTN Houdatsushimizu Corp. so far and supplied them to applications such as main shaft of wind turbines. However, the demand from the Chinese market has declined significantly, as the Chinese government has set the policy to procure bearings domestically while Chinese wind turbine manufacturers has been getting the market share. In order to flexibly respond to these changes in the business environment, and maintain and enhance our competitive advantage through efficient production, we have decided to restructure the production structure of extra-large size bearings and consolidate it to Kuwana Works. We are gradually transferring the production functions of NTN Houdatsushimizu Corp. to Kuwana Works and will respond to global market demand from Kuwana Works in the future. Following the completion of the production transfer, NTN Houdatsushimizu Corp. is scheduled to be closed around the spring of 2026. As a result of this restructuring, we expect to achieve reductions in both variable and fixed costs amounting to several hundred million yen annually. NTN will continue to optimize its production structure across various regions including Japan, Europe and Americas, with the aim of improving asset efficiency. At the same time, we will further enhance our competitiveness in terms of quality, cost and delivery, and strive to increase our corporate value.