Several Japanese companies are opening factories in the United States. The companies find that they?
Several Japanese companies are opening factories in the United States. The companies find that they can save money by doing this, especially at a time when the dollar is week in comparison with other currencies, including the yen.
One such factory to open recently is in Chicago, Illinois. Owned by the NTN Bearing Corporation of America, a subsidiary of a larger Japanese company, it produces ball bearings. An interesting feature of this factory is that it is equipped with Japanese designed machinery, makes the bearings from Japanese material, and exports them to Japan.
The factory has only 40 employees, and it produces a million ball bearings a month. At present, half the work-force is Japanese, but by the end of next year the situation will have changed. The entire operation will be run by Americans with some Japanese help.
SYNOPSIS: Japanese industrialists are expanding into the United States to save money. Several Japanese companies have been building factories there, a move that many Americans find surprising. One plant has just been opened in Chicago, a major business centre in America's Mid-Western region.
The factory is owned by the NTN Bearing Corporation of America, a subsidiary of a Japanese company. But what makes this factory particularly interesting is not the ball bearings it makes but where it sends them - to Japan. It is also equipped with Japanese-designed machinery and imports the materials to make the ball-bearings from Japan. One reason for this recent overseas development by Japanese industry is the strength of the yen against other currencies, making overseas prices that much cheaper.
It takes only 40 employees to make the one million ball bearings produced here each month. At present half the work-force is Japanese, but by the end of next year the factory will be staffed entirely by Americans, with some Japanese technical help.