SKF increases regional capabilities across Asia

Rhea-AI Summary

SKF has announced investments totaling SEK 1.25 billion to enhance manufacturing and engineering capabilities in Asia, focusing on China, India, and Southeast Asia. In China, the company is consolidating its operations from 16 to 9 sites, with a SEK 1 billion investment in the Dalian factory to improve service for large and medium-size bearings. Additionally, SEK 250 million will be allocated for local manufacturing in India and Southeast Asia, expanding their deep-groove ball bearing offerings.

Positive

• Investment of SEK 1.25 billion to boost regional capabilities in Asia.
• Consolidation of manufacturing sites in China enhances efficiency.
• SEK 1 billion investment in Dalian factory to improve large and medium-size bearing service.
• SEK 250 million investment in India and Southeast Asia to enhance manufacturing and supply chain.

Negative

• None.

Investments totaling SEK 1.25 billion to increase capabilities and competitiveness across China, India and Southeast Asia

GOTHENBURG, Sweden, Nov. 24, 2022 /PRNewswire/ -- SKF is continuing to increase its regional capabilities across Asia, through selected investments in its manufacturing and engineering capabilities in the region.

In China, SKF has consolidated its manufacturing footprint from 16 to nine manufacturing sites in the last four years. This process has brought together modern manufacturing capabilities with design, development and testing competence that supports the application specific needs and speed to market requirements of regional customers.

As part of the Group's ambitions to increase its competitiveness and service offer for large- and medium-size bearings, an investment program totaling SEK 1 billion is ongoing at SKF's Dalian factory in China, which is being expanded and modernized in several phases. The next phase of expansion will be completed during 2024, increasing capabilities in several industrial segments.

Henry Wang, President, China and Northeast Asia, says: "Investing in our local manufacturing and engineering hubs is an important step in strengthening our ability to support our customers in one of the largest bearing markets in the world."

In India and Southeast Asia, SKF is investing SEK 250 million, to improve its local manufacturing capabilities, boost the supply chain network and accelerate regionalization. With these investments, a stronger deep-groove ball bearing and hub bearing unit offer will be created for general industrial and automotive applications across the region.

Manish Bhatnagar, President, India and Southeast Asia, says: "These investments are consistent with our overall strategy and create a basis for continued profitable growth in key segments. We will also be able to help customers capture more value and broaden our customer base across both India and Southeast Asia."

For further information, please contact: PRESS: Theo Kjellberg, Director, Press Relations
tel: 46 31 337 6576, mobile: 46 725-776576, e-mail: theo.kjellberg@skf.com

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

The following files are available for download:

https://mb.cision.com/Main/637/3672083/1692240.pdf

20221124 SKF increases regional capabilities across Asia

View original content:https://www.prnewswire.com/news-releases/skf-increases-regional-capabilities-across-asia-301686691.html

SOURCE SKF

FAQ

What recent investments has SKF made in Asia?

SKF has announced SEK 1.25 billion in investments to enhance its manufacturing and engineering capabilities across China, India, and Southeast Asia.

How will the investment in the Dalian factory impact SKF?

The SEK 1 billion investment in the Dalian factory aims to improve service for large and medium-size bearings and is expected to increase capabilities across several industrial segments by 2024.

What is the focus of SKF's investments in India and Southeast Asia?

SKF is investing SEK 250 million in India and Southeast Asia to improve local manufacturing capabilities and boost the supply chain for deep-groove ball bearings and hub bearing units.

When is the next phase of expansion at SKF's Dalian factory expected to be completed?

The next phase of expansion at SKF's Dalian factory is expected to be completed during 2024.

What strategic benefits does SKF foresee from these investments?

These investments will strengthen SKF's ability to support customers in key markets, enhance product offerings, and create a basis for continued profitable growth.