Maintenance & Reliability
SKF to reorganize North American manufacturing operations
October 5, 2020 By P&PC Staff
SKF is investing approximately $50 million to reorganize some of its processes in North America, which will result in the expansion of one factory and the closure of two others.
Approximately $28 million will be used to expand and automate manufacturing processes at the group’s factory in Sumter, South Carolina.
The technology upgrades and improved delivery times mean the company will consolidate its factories in Avon, Ohio and North Charleston, South Carolina into the Sumter facility, resulting in the loss of 115 jobs.
A further $23 million is being invested in localizing manufacturing of tapered roller bearings (TRBs) from China to an existing manufacturing site in Mexico.
“These investments illustrate SKF’s commitment to better serving customers in the region and will improve both our flexibility and competitiveness,” says John Schmidt, president, industrial sales, Americas.
“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.”
The investments and consolidation will take approximately 12-18 months to implement. Associated restructuring costs are expected to amount to $4 million and will be accounted for during the third quarter of 2020.
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