Automotive Trucks information on net.

PITTSBURGH -- Timken Co., Canton, Ohio, will invest about $10 million in its bearings plant in Altavista, Va., to take advantage of the growing automotive aftermarket.

The expansion will enable Timken to make the most of increased demand for replacement wheel-hub bearing assemblies for light-duty pickup trucks and sport utility vehicles.

"The Altavista facility has been a strong performer for Timken, and we are adding capacity to capitalize on a significant opportunity for profitable growth in the automotive aftermarket with this expansion," said Jack Cameron, Timken's general manager for the North and South American automotive aftermarket.

Timken supplies automotive wheelhub bearing assemblies to both original equipment manufacturers (OEMs) and the automotive aftermarket. The Altavista facility, which has 140,000 square feet of space with about 308 employees, has grown steadily since it opened in 1991.

Timken plans to add 50 new jobs and increase capacity of the Campbell County plant. The expansion project, which will begin in the second quarter of 2006, will receive roughly $460,000 in state and local government incentives.

"Access to a strong, well-educated work force and excellent infrastructure in a pro-growth business environment has been integral to our success in Virginia," John Plazak, Altavista's plant manager, said.

Michael Greenwald, an analyst with BB&T Capital Markets, Richmond, Va., said the expansion is another example of Timken taking advantage of a growing market.

"This goes along with their steady build-out of their bearing operations," he said. "They're pretty heavy in capex (capital expenditure) spending right now." For example, in November 2005 Timken said it would spend $27 million to expand its Asheboro bearings plant in Randleman, N.C., which produces highly engineered tapered roller bearings for industrial applications (AMM, Nov. 8).

"The aftermarket is a little better margin business for them," Greenwald said. "Any time you're selling to OEMs it is not as profitable."

Statistics from the Motor and Equipment Manufacturers Association (MEMA), Orland Park, Ill., show the automotive aftermarket represents a $190.5-billion market, with expectations for it to grow 3.5 percent a year during the next five years, about even with the trend seen during the past decade.

# posted by Medical Information : 5:51 AM