SKF closes US plant

SKF closes US plant SKF has decided to close one of the Group's plants in the United States. The decision relates to the facility in Gastonia, North Carolina, which belongs to SKF's US subsidiary, Chicago Rawhide. Operations at the Gastonia plant, which has approximately 330 employees, will be terminated at the latest on June 30, 1999. The decision to close the plant is part of the SKF program of restructuring measures to increase the efficiency of the Group's operations and improve profitability. In accordance with the program, SKF's total work force will be reduced by approximately 4 000 personnel during a two-year period. The production operations conducted by the Gastonia plant will be transferred to other units within Chicago Rawhide's North American activities. The premises will be sold. Chicago Rawhide is one of the world's leading producers of seals with production in North America, Europe and Asia. Production in Gastonia includes engine and transmission seals for the US automotive industry. At the same time, Chicago Rawhide has decided to shut down its stamping operations at the company's plant in Elgin, Illinois. Some 50 employees are affected by this decision. Most of them will be offered alternative jobs within the Elgin plant. This shutdown is also part of SKF's ongoing restructuring program. In future, Chicago Rawhide's stamping operations will be outsourced to external suppliers. Göteborg, September 16, 1998 Aktiebolaget SKF (publ.) For further information, please contact: Åke Svanberg, SKF Group Communication, tel +46-31-3372005, fax +46-31-3371722, e-mail ake.svanberg@skf.com Aktiebolaget SKF, SE-415 50 Göteborg, Sweden tel: +46-31-3371000, fax: +46-31-3372832, www.skf.com