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CW Bearing USA expects to start manufacturing an innovative, self-developed auto part late this year at its new factory near Detroit, which will help boost the Chinese bearing manufacturer's US market share.
A subsidiary of Ningbo, China-based Cixing Group Co, the company's research-and-development team in the US designed an integrated ball nut for automobiles' electronic power steering (EPS) systems eight years ago.
The new bearing component can help reduce exhaust emissions as well as gasoline consumption because it realizes "zero friction" or minimizes the energy loss by integrating two bearings to the ends of a ball nut instead of the traditional way of attaching the two bearings to it.
With an estimated investment of $25.9 million, a 50,000-square-foot plant is being constructed in Northville Township, a Detroit suburb, for production of such ball nuts. The company has also built a new headquarters in Novi, Michigan, for design, sales and advanced manufacturing.
The new factory is expected to start operations late this year with projected annual revenue of $20 million and create 125 local jobs, including assembly line workers, engineers, management and sales staff, according to Hu Lirong, president and CEO of CW Bearing USA.
The ball nuts manufactured at the new facility will be supplied to General Motors, which has a contract with CW Bearing USA through 2026.
CW Bearing is one of only two companies in the world able to manufacture the integrated ball nut, said Hu. The other company is in Germany, however, CW Bearing's price is about 30 percent less.
The company chose Michigan over competing sites in Toledo, Ohio, and Columbia, South Carolina, to build its new factory.
"This facility, located near the heart of the North American auto industry, will allow us to better support our 'Customer First' philosophy by increasing both our global manufacturing and technical capabilities, allowing us to bring more value and versatility to our growing customers," said Jay Click, director of sales at CW Bearing USA.
It is also expected to help increase the company's market share in the US and guarantee timely delivery of its products by avoiding supply-chain disruptions, he said.
The factory has received support from local and state government.
Northville Township has offered property tax abatement, and Michigan approved the project for its Business Development Program in August. The incentive program provides grants, loans or other economic assistance to highly competitive projects that create jobs or provide investment.
Established in 1994 in Southern California, CW Bearing USA has grown into a major supplier of ball bearings to automakers such as Chrysler, Ford and GM. Volkswagen started to use its hub wheel system, and the VW business is expected to generate a profit of $50 million by 2020, company officials said.
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| MI-253020 NTN | 39.688 | 32 | |
| MI-242816 NTN | 38.1 | 25.65 |