Japanese bearing maker NTN Corp. said it would sign an agreement in July to set up two joint ventures with Renault for production of constant-velocity joints.
A joint venture named NTN Transmissions Europe plans to build a plant in Le Mans, France. NTN will hold a majority stake and supply components to Renault as well as other automakers, a spokes-man said.
Production is scheduled to start in 2000 with 800 workers.
Renault will spin off its existing Le Mans-based constant-velocity joints division to form a second joint venture with NTN that will be owned 80 percent by Renault and 20 percent by NTN.
Plans call for that company to be absorbed into NTN Transmissions by the end of 2003 with facilities and employees moving to NTN Transmissions.