Timken Co, which makes industrial bearings and specialty steel, said it agreed to sell its needle roller bearings business to Japanese autoparts maker Jtekt Corp for about $300 million.

Timken said proceeds from the sale, which is expected to close by the end of 2009, would be used to provide increased liquidity and for general company purposes.

On Monday, Timken had said it was in advanced talks to sell the business but did not identify the buyer.

Timken's needle roller bearings business was part of the Torrington acquisition it made in 2003. The business has about 3,400 associates, the company said.

(Reporting by A.Ananthalakshmi in Bangalore; Editing by Aradhana Aravindan)