SKF invests in strengthened competitiveness in North America
SKF is set to invest SEK 550 million to enhance its manufacturing capabilities in North America. The investment includes SEK 350 million for expanding and automating its Sumter, South Carolina facility, and SEK 200 million for localizing Tapered Roller Bearings production from China to Mexico. This strategy aims to bolster regional manufacturing and improve product offerings. The consolidation of factories from Avon and North Charleston into Sumter will lead to a staff reduction of approximately 120 employees with a restructuring cost of SEK 35 million.
- Investment of SEK 550 million to strengthen North American manufacturing.
- SEK 350 million allocated for automation and expansion in Sumter, South Carolina.
- Localizing Tapered Roller Bearings production to Mexico enhances supply chain efficiency.
- Consolidation of factories may improve overall operational efficiency.
- Reduction of approximately 120 jobs due to factory consolidation.
- Restructuring costs amounting to SEK 35 million impacting short-term financials.
GOTHENBURG, Sweden, Sept. 22, 2020 /PRNewswire/ -- SKF is investing approximately SEK 550 million in strengthening its manufacturing footprint and competitiveness in North America.
Approximately SEK 350 million is being invested in expanding and automating manufacturing processes at the Group's factory in Sumter, South Carolina.
A further SEK 200 million is being invested in localizing manufacturing of Tapered Roller Bearings (TRBs) from China to an existing manufacturing site in Mexico. The transfer supports the Group's regional manufacturing ambitions and will strengthen SKF's North American product offering.
The resulting improvements in flexibility and service levels enable the Group to consolidate its factories in Avon, Ohio and North Charleston, South Carolina into the Sumter factory.
John Schmidt, President, Industrial Sales, Americas, says: "These investments illustrate SKF's commitment to better serving customers in the region and will improve both our flexibility and competitiveness. While this is an essential step for SKF, we do not take decisions that impact our employees lightly. We are deeply appreciative of our employees in Avon and North Charleston and we are committed to fully supporting them as they transition to roles outside SKF."
Kent Viitanen, President, Bearing Operations, says: "These investments represent the next steps in developing our regional manufacturing capabilities. Our investments in Sumter will expand their product capability, as well as see the first implementation of our automated manufacturing technologies within the slewing bearing cluster."
The investments and consolidation announced today will take approximately 12-18 months to implement and will result in a reduction in staff of approximately 120, with associated restructuring costs amounting to SEK 35 million, to be accounted for during the third quarter of 2020.
Aktiebolaget SKF
(publ)
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
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SOURCE SKF
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