SKF increases localization rate in the Americas and Asia; closes factory in Busan, Korea

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SKF (Aktiebolaget SKF) announces a transfer of supply from the Busan factory, Korea, to China, India, and Mexico, with a full closure of the Busan site expected in Q1 2024. The move aims to regionalize operations and enhance customer proximity, particularly in the Automotive industry. The factory currently employs 90 workers and mainly manufactures bearing products. The decision supports SKF's Automotive strategy and portfolio re-positioning towards electric vehicle drivetrain and commercial vehicle segments.

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• None.

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• The closure of the Busan factory may lead to job losses for approximately 90 employees, posing a negative impact on the local community and economy.

GOTHENBURG, Sweden, Dec. 1, 2023 /PRNewswire/ -- SKF today announces a transfer of the supply of products from the factory in Busan, Korea, to China, India and Mexico. This is another step in the continuous execution of the Group's strategy, where regionalization is an important part. Consequently, and after a thorough business review and consideration of alternative options, it has been decided that the manufacturing site in Busan will be ramped down, with a full closure anticipated in the first quarter of 2024. SKF will remain a local presence in Korea to serve its existing customers there.

The Busan factory currently employs approximately 90 employees and mainly manufactures bearing products for the Automotive industry. During the last years, several attempts have been made to penetrate the Korean domestic market. However, a vast majority of the products manufactured in Busan are still exported to other markets.

By transferring the supply of products to SKF's factories in Puebla, Mexico, Pune, India, and Shanghai ATC, China, these businesses will be closer to its existing customers. In addition, it will enable these businesses to expand by attracting new local business opportunities. This also supports the Group's Automotive strategy and the ongoing portfolio re-positioning towards the electric vehicle drivetrain and commercial vehicle segments.

Henry Wang, President Industrial Region China and Northeast Asia, says: "The decision to close our factory in Busan is very difficult to take but it is absolutely vital for us to be close to our customers in order to serve them even better. Transferring the supply of these products also enables us to attract new business opportunities in our different regions."

"Our focus now is to provide support to our employees in Busan during these challenging times. On behalf of the full management team of SKF, I would also like to express our appreciation for the commitment and dedication they have shown over the years."

Aktiebolaget SKF
      (publ)

For further information, please contact:
PRESS: Carl Bjernstam, Head of Media Relations
tel: 46 31-337 2517; mobile: 46 722-201 893; e-mail: carl.bjernstam@skf.com

INVESTOR RELATIONS: Patrik Stenberg, Head of Investor Relations
tel: 46 31-337 2104; mobile: 46 705-472 104; patrik.stenberg@skf.com

The following files are available for download:

https://mb.cision.com/Main/637/3886028/2466674.pdf	20231201 SKF increases localization rate in the Americas and Asia; closes factory in Busan, Korea
https://news.cision.com/skf/i/hbu3-jpeg-fullresolution,c3244873	HBU3 jpeg fullresolution
https://news.cision.com/skf/i/skf-henry-wang,c3244874	SKF-Henry Wang

 

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SOURCE SKF

FAQ

What is the latest announcement from SKF?

SKF announces a transfer of product supply from the Busan factory in Korea to China, India, and Mexico, with a full closure of the Busan site expected in Q1 2024.

How many employees are currently working at the Busan factory?

The Busan factory currently employs approximately 90 employees.

What products are manufactured at the Busan factory?

The factory mainly manufactures bearing products for the Automotive industry.

What is the reason behind the decision to close the Busan factory?

The decision aims to regionalize operations and enhance customer proximity, particularly in the Automotive industry.

How will the closure of the Busan factory impact SKF's operations?

The closure supports SKF's Automotive strategy and portfolio re-positioning towards electric vehicle drivetrain and commercial vehicle segments, but may lead to job losses for approximately 90 employees.

Who is the President of Industrial Region China and Northeast Asia at SKF?

Henry Wang is the President of Industrial Region China and Northeast Asia at SKF.