SKF, FAG and NN Ball and Roller start joint venture for ballmanufacturing

SKF, FAG and NN Ball and Roller start joint venture for ball manufacturing SKF, Sweden, FAG Kugelfischer Georg Schäfer AG, Germany, and the US company NN Ball & Roller Inc. will start a jointly owned stand-alone company in Europe - NN Euroball Aps - for the manufacture and sale of chrome steel balls used for ball bearings and other products. NN Ball & Roller Inc. will have 54 percent of the shares in the new company, SKF and FAG will have 23 percent each. NN Euroball Aps plans to start to operate during the summer 2000. The new company will acquire the parties ball factories located in Pinerolo, Italy (SKF), Eltmann, Germany (FAG) and Kilkenny, Ireland (NN Ball & Roller Inc). The number of employees will be some 700 and yearly sales will be about MEUR 100 million euro. The economy of scale will enhance competitiveness in both cost and quality. SKF's decision to sell its chrome steel ball manufacturing in Europe is in line with the Group's announced strategy to reduce its vertical integration and thereby also reducing its total assets. The sale of the Pinerolo plant will reduce the Group's net assets with some MSEK 250. __NN Euroball Aps will have a six year supply agreement with the SKF Group. SKF, Sweden, is the world's largest bearing company with sales of MSEK 36 693 (MEUR 4 159) in 1999. FAG, Germany, is one of the largest European bearing manufacturers with sales of MDEM 3 700 (MEUR 1 900) in 1999 and NN Ball & Roller Inc., USA, is a leading manufacturer and supplier of precision balls to bearing manufacturers with sales of MUSD 85.3 million (MEUR 80 ) in 1999. Göteborg, April 10, 2000 Aktiebolaget SKF (publ.) For further information, please contact: Lars G Malmer, SKF Group Communication, tel +46-31-3371541, e-mail: Lars.G.Malmer@skf.com Aktiebolaget SKF, SE-415 50 Göteborg, Sweden, tel +46-31-3371000, fax +46- 31-3372832, www.skf.com ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/04/10/20000410BIT00250/bit0001.doc http://www.bit.se/bitonline/2000/04/10/20000410BIT00250/bit0002.pdf