Goteborg, June 9, 2016: SKF (SKF) today announced the merger of its factories in North America, and located off the California Santiago and Maryland factory in Baltimore.
The merger is expected to cost about 300 million kronor, of which approximately SEK 100 million of the restructuring costs included in the 2016 quarter of second, the remaining costs will be based on actual spending time accounting. After the merger is expected since 2019, SKF each year will be able to save the cost of approximately SEK 220 million, is expected in 2018 will save approximately SEK 70 million.
SKF Bearing business group president Luc Graux said: "by improving the utilization rate of manufacturing assets, the merger will be able to consolidate our position in the North American market, make us more competitive and better service for customers. In addition, this initiative will also lay a solid foundation for the development of our manufacturing processes and technologies."
The existing production business SKF is located in Pennsylvania's Hannover plant will be transferred to Georgia, Flowery Branch. In order to meet the needs of customers, the group will be spherical roller bearings and large-size roller bearing manufacturing into Flowery Branch existing bearing manufacturing business. After merger, SKF group will have a manufacturing base for a stronger and more efficient in North America, so as to provide better services for customers in North america.
The production of bearing rings and seals used in aerospace industry will be transferred from the current Baltimore plant to the Hannover plant. We will discuss the impact of this restructuring on employees in Hannover and Baltimore, respectively.
As part of the implementation of SKF group of world-class manufacturing strategy, the group will invest a total of SEK 150 million to upgrade Hannover and Flowery Branch factory machinery and manufacturing process.
Production and development of condition monitoring solutions will shift from Santiago to other factories in europe. In this way, SKF group will be able to provide faster speed monitoring and better solutions for customers, because the development team will be concentrated in the same area, close to the other SKF in Europe, Skye technology center. Santiago will remain a group of technical support team.
To provide services for customers in Mexico agricultural areas of Puebla Y bearing and bearing unit factory will also be closed, the business will be transferred to other SKF factory.
Hannover, Flowery Branch, Baltimore and Santiago, the merger is expected to work for 18-24 months. The Y bearing and bearing unit production plant in Mexico, Puebla, is expected to close in the summer of 2016.