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NSK further strengthens its global corporate structure

7/29/2011

No impact of power shortages in Japan on operations

Tokyo, Japan, July 25, 2011 - NSK Ltd. (NSK: Headquarters: Tokyo, Japan; President and CEO: Norio Otsuka) today announced that there will be no impact of power shortages in Japan on NSK's production facilities and business operations. The company will meet all commitments to customers in terms of quality, cost and delivery and will further increase production output while exceeding the 15% power conservation target set by Japan's government for Japanese corporations operating facilities in Eastern Japan. Despite the power shortages in Japan, NSK expects a 15% rise in operating income to 50 billion JPY and a 3% growth in net sales to 730 billion JPY for the year through March 2012.

"Power conservation has long been a recognized priority across the NSK Group, including R&D, production facilities and offices. At our production sites worldwide, we are constantly committed to reducing energy while further increasing production. The current situation in Japan comes as a reminder of the unlimited possibilities for kaizen, meaning unlimited possibilities for further improvement", says Senior Vice President Hideyuki Shibamoto, Head of the Manufacturing Strategy Division Headquarters at NSK Ltd. "The ideal of unlimited possibilities for improvement has always been at the core of NSK's corporate policy. NSK is continuing on its path to further increase productivity and fully harness the potential of its facilities worldwide to strengthen its global corporate structure."

In response to power shortages in Japan as a result of the March 11 earthquake and tsunami, plant employees receive training to further raise energy saving awareness. NSK has also secured in-house power generation at its plants in Japan. At all NSK facilities in Japan, including the NSK Headquarters in Tokyo, power consumption has been reduced significantly by reducing lighting and air-conditioning, by setting office appliances to power saving mode, by reducing elevator service and turning off electric signage. To further assist the power saving measures on weekdays when power demand typically peaks, NSK facilities across Japan will work weekends from July thru September, when power demand in Japan is low, and will take time off on weekdays. Customer service functions of each business unit will be open to correspond with customer operations.

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