Oiles Corp. (Japan; TSE: 6282) formally announced it is moving European distribution operations from Germany to the Czech Republic by 2007. The move has been anticipated for over a year, since Oiles moved its bearing manufacturing operations from Germany to its Kadan plant in the Czech Republic in 2005. Oiles Czech Manufacturing SRO was set up as Germany has become a prohibitively expensive base of operations for many manufacturers and distributors in Europe. In that move to the Czech Republic, Oiles follows bearing manufacturers such as Daido, Nachi and Timken. Currently, Oiles ships raw materials from Japan to the Czech Republic, and finished bearings to Germany for distribution throughout Europe. Consolidating both functions in the lowest-cost location is the next logical progression. Founded in 1939, Oiles is a diversified manufacturing and engineering company headquartered in Tokyo. Its primary business is Oiles Bearing, a world leader in self-lubricating bearings, and a primary supplier of bearings and seals to Japanese automakers such as Toyota, Honda, and Nissan. Oiles bearings use graphite, polyacetyl, sintered and tetrafluoroethylene surfaces on a wide variety of base materials, producing an extensive product lineup for rotating and linear motion applications. Oiles operates in four divisions: Bearing Division, Structural Division, Architectural Division, and Other. Both the Bearing Division and Structural Division manufacture bearings. Bearing Division produces oilless bearings and related devices for a variety of applications in transportation equipment, electrical equipment, general industrial machinery and other miscellaneous markets. The Structural Division produces earthquake isolation and damping devices, bridge bearings, suspension bridge bearings, and related devices. Together the two bearing-related divisions dominate Oiles sales, accounting for 77% of sales, up from 68% in 2001. However, as structural bearing sales slid 28% since 2001, traditional Bearing Division bearing sales have risen 33% in the same period.