• 　Present situation of bearing industry

1. Slow growth of world bearing industry
Bearing is an important basic machine part and matching part of machinery industry. Since the invention of bearing, the world bearing industry has been developing continuously. A large market has been formed with annual sales of 40 billion US dollars and there are dozens of world-famous bearing production companies. In resent years, international bearing market grows slowly. Meanwhile, Chinese bearing industry is growing rapidly together with the development of Chinese national economy.
2. Rapid development of Chinese bearing market
In resent years, with the rapid development of machinery industry, Chinese bearing industry is developing at a speed higher than national economy. A lot of national key engineering projects, such as delivery of west gas to the east, transmission of west electricity to the east, transference of south water to the north, Three Gorges reservoir on the Changjiang River, Beijing Olympic Games in 2008, and Shanghai World Exhibition in 2010, will need great amount of machinery as well as great amount of bearings. This situation will provide large market space for bearing industry development. It is estimated that in a few years, bearing market will grow at a speed of over 10%. In 2005, market capacity of Chinese bearing industry will be nearly 5 billion sets.
3. Major demand for bearings in China in near future
According to analysis, major demand for bearing products in China in near future will be in four categories. First category is bearings for automobile and motorcycle. These bearings have large demand and high additional value. This category includes hub bearing, separating bearing in clutch, shaft-connecting bearing in water pump, compressor bearing in air conditioner, bearing in gear box, bearing in engine, and so on. Second category is bearings with high technology and high reliability, such as bearing in locomotive, passenger train and freight train, bearing in steel rolling mill, and bearing in engineering machinery. Third category is sealed bearings of high precision and low noise, such as spindle bearing in machine tool, bearing in electric motor, bearing in soft and hard drive of computer, and so on. Fourth category is bearings for agricultural machinery and agricultural vehicle.
4. China being the aim of world-famous bearing companies
Since bearing industry is the industry of labor intensity and technology intensity. With labor cost increasing continuously, many foreign bearing companies are entering China. Ten largest bearing companies in the world have established factories of joint-venture or of their own investment in China. Recently, new projects and new factories are being constructed with increasing scale. Famous bearing companies, such as NSK and Timken, are supplementing investment to set up factories in China.

• 　Advantage of machinery industry and present situation of bearing industry in Luoyang

Fifty years ago, many large-scale machinery factories were constructed in Luoyang, establishing advantage of machinery manufacturing and bearing industry in this city.

1. Advantage of machinery industry in Luoyang
Luoyang has a thick foundation of machinery industry, as there are many large machinery factories in the city. China First Tractor Group, Luoyang Bearing Group, Luoyang Copper Processing Group, Zhongxin Heavy Machinery Company and Luoyang North Ek Chor Motorcycle Company are all well-known enterprises in China and in the world. There are 500 thousand workers and 120 thousand technicians in the city. There are more than 300 scientific and technical research institutes, in which 14 are national research institutes, 6 are national technology centers and 6 are national examination centers.

2. Present situation of bearing industry in Luoyang
Luoyang is the base of Chinese bearing industry. Its bearing research and production ability is strong. Of the ten vice chairmen of China Bearing Industry Association, three are in Luoyang. There are a lot of bearing enterprises in Luoyang. The following three enterprises represent the strength of Luoyang bearing industry:
(1). Luoyang Bearing Group Company Limited
Established in 1953, Luoyang Bearing Group Company Limited is the largest comprehensive bearing manufacturer of Chinese bearing industry. It can produce over 6,000 various bearings of 9 categories and different precision. Annual output of production is 70 million sets. The smallest inner diameter of its bearing is 10 mm, while the largest outer diameter of its bearing is 5.44 m. The lightest bearing is 25.4 g, while the heaviest bearing is 15 t. The bearing products of Luoyang Bearing Group are widely used in car, truck, railway vehicle, ship, mine, metallurgy, petrochemistry, electricity, agriculture, textile, aviation, space flight, and so on.
(2). Luoyang Bearing Research Institute
Established in 1958, Luoyang Bearing Research Institute is the sole national research institute of Chinese bearing industry. Its business is in the fields of bearing technology, development, consultation and service. It specializes development and research of comprehensive bearing technology, for example: basic theory of rolling bearing, bearing design, technological equipment, precision instrument, material engineering, precision examination, test technology, information, standard, and so on. The National Bearing Quality Supervision and Examination Center, the National Standardization Technology Committee of Rolling Bearing, the Technology Committee of China Bearing Industry Association are set up in Luoyang Bearing Research Institute. The Engineering Research Center of High-peed Precision Baring of Machinery Industry and Technology Development Center of Military Bearing are also set up in Luoyang Bearing Research Institute.
(3). The Tenth Design and Research Institute of Machinery Industry
The Tenth Design and Research Institute of Machinery Industry is a class A national comprehensive institute. It possesses class A qualification certificates of machinery engineering design, architectural engineering design, project general contracting, engineering consultation, environment pollution treatment, and so on. It is the sole industry planning and factory design institute of bearing industry in China. It has designed a lot of bearing factories and various architectural engineering projects.

• 　Advantage of bearing industry development in Luoyang

First, there is a solid foundation of bearing industry in Luoyang. There is one of the big three Chinese bearing groups, which is Luoyang Bearing Group. There is a sole industry planning institute of Chinese bearing industry, which is The Tenth Design and Research Institute of Machinery Industry. There is a sole bearing product design institute of Chinese bearing industry, which is Luoyang Bearing Research Institute. There is Henan University of Science and Technology in Luoyang. The university has a bearing major which is the earliest bearing major in China. Many students graduate from the bearing major each year.

Second, bearing industry is labor-intensive industry. There are great many workers in Luoyang. Cheap labor in the city can be provided to bearing manufacturer. No other city can be compared with Luoyang in the personnel storage of technicians of bearing industry.

Third, the machinery industry in Luoyang is strong. It can coordinate bearing production from steel making, casting, forging, heat-treating to machining. There is complete machining equipment and production capability in the city. There is AOD metallurgy equipment in Luoyang Ship-building Material Research Institute. The equipment can make special steel of 10,000 t each year. In Luoyang Zhongxin Heavy Machinery Company, there is a rolling mill whose diameter is 5 m. The rolling mill is introduced from Germany. The company also has a lathe whose diameter is 10 m and has relevant heat-treatment equipment. There is precision numerical control machine tool in Luoyang 613 Research Institute. The production ability in Luoyang provides convenient condition to develop special bearing and large bearing.

Forth, there is a big bearing market in Luoyang. Luoyang is one of the important industrial cities in China. There are various industrial enterprises in the city and demand for bearing is great. For example, China First Tractor Group produces more than 200 thousand tractors, engineering machinery and agricultural machinery annually. Luoyang North Ek Chor Motorcycle Company and Luoyang North Enterprise Group produce more than 400 thousand motorcycles each year. Heavy truck production project is being constructed in the city. Those products need great amount of bearings. Big market is provided to bearing manufacturers in Luoyang.

Fifth, Luoyang is a famous bearing base in China. It enjoys good reputation among bearing users in various parts of China. It is a traditional distributing center of bearing products. With its complete sales network, bearing manufacturers in Luoyang can quickly sell their products and expand their market.

• 　The bearing projects under construction in Luoyang

Since there is advantage of developing bearing industry in Luoyang, many projects of bearing and relevant products are being constructed in Luoyang now. The followings are a few of them:

1．Bearing Research Science Technology Company Limited
This company is formed mainly by Luoyang Bearing Research Institute. The company is located in Luoyang New and High Technology Industry Development Zone. It produces high precision bearing, bearing with special structure, high-speed electric spindle, bearing examination instrument, bearing machining equipment, and so on. The company is preparing to issue stocks at the end of this year or at the beginning of next year.

2．Luoling Bearing Company Limited
This company is established in 2003 and is located in Luoyang New and High Technology Industry Development Zone. It produces various ball bearings, roller bearings and bearings for automobile and motorcycle. The company has finished construction and has been put into operation. Its annual sales volume is 100 million yuan.

3．Juchuang Enterprise Company Limited
This company is established in 2003 and is located in Luoyang New and High Technology Industry Development Zone. It produces bearings for automobile and motorcycle.

4．Joint-venture of Japanese NTN and Luoyang Bearing Group
NTN from Japan is number 4 in the world bearing industry. Luoyang Bearing Group is preparing for strategic cooperation with NTN to form a new company. Funds of 600 million yuan will be invested to produce bearings for automobile and motorcycle, bearings for railway vehicle, extra-large bearings, etc.

5．Derun Precision Bearing Factory
This factory is established in 2003 to produce various precision bearings.

6．Luoyang Precision Machine Tool Factory
This factory is registered in Luoyang New and High Technology Industry Development Zone in 2003. Capital construction of the factory is being carried out. It will produce internal and external grinders for bearing production, and other bearing production machine tools.

• 　Large profit space in Luoyang for investment to bearing industry

A long chain of bearing industry has been formed in Luoyang from factory design to product design and from production to coordination. Luoyang has high reputation in bearing industry in China. Investment into bearing industry in Luoyang will utilize advantage of the city and will soon have production ability. Foreign investor will soon occupy Chinese market and obtain rich profit.
Luoyang New and High Technology Industry Development Zone is pleased to help foreign investor to establish production base in central area of China, and do its best to safeguard the interest of foreign investor.