Expansion SKF to Invest 50 Million Dollars for Expanding Manufacturing Capabilities in North America
Out of the total 50 million dollars, SKF will invest 28 million dollars for expanding and automating its manufacturing processes at the company’s South Carolina facility. Apart from this, 23 million dollars will be invested in localising the production of tapered roller bearings.
Gothenburg/Sweden – SKF is investing approximately 50 million dollars in strengthening its manufacturing footprint and competitiveness in North America. Approximately 28 million dollars is being invested in expanding and automating manufacturing processes at the Group's factory in Sumter, South Carolina.
A further 23 million dollars is being invested in localising 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 serve its 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 recently 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 4 million dollars, to be accounted for during the third quarter of 2020.