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The Timken Company Buying Out Joint-Venture Partner in China

17 January 2001

The Timken Company Buying Out Joint-Venture Partner in China

    CANTON, Ohio, Jan. 17 The Timken Company
announced today that it is buying all of the equity of its local joint-venture
partner in Yantai Timken Company Ltd.  This will increase the company's
ownership to 100 percent.
    "China is an integral part of the company's global business strategy to
strengthen its presence in high-growth markets," said James W. Griffith,
Timken president and chief operating officer.  "With the buyout of our joint-
venture partner, we intend to speed up the transfer of leading edge technology
to Yantai Timken to manufacture world-class products there both for Chinese
and export markets.  The change also increases our ability to achieve greater
productivity and efficiency in Yantai," Mr. Griffith said.   "The excellent
cooperation with local government in Yantai has facilitated the buyout and
also supported a labor management program at the Yantai facility which has
reduced the plant's workforce by 400 people over the past six months.  A
principal goal of our Company's transformation is to become truly global.
This buyout will move us closer to that objective."
    Timken began its joint venture in 1996 with the Yantai Bearing Factory.
The factory produces products primarily for the Chinese automotive, heavy
truck and mobile industrial markets.  The plant currently employs about
970 people and had 2000 sales of approximately $10 million.  Timken also
maintains sales offices in Beijing, Shanghai and Hong Kong. "The new
investment will further demonstrate our commitment to building our Yantai
plant into a leading bearing manufacturing base in Asia," Mr. Griffith said.
    The Timken Company ( http://www.timken.com ) is a leading
international manufacturer of highly engineered bearings and alloy steels with
operations in 24 countries.  The company employs about 21,000 people
worldwide.