SKF increases localization rate in the Americas and Asia; closes factory in Busan, Korea
Gothenburg, 1 December 2023: SKF today announces a transfer of the supply of products from the factory in Busan, Korea, to China, India and Mexico. This is another step in the continuous execution of the Group’s strategy, where regionalization is an important part. Consequently, and after a thorough business review and consideration of alternative options, it has been decided that the manufacturing site in Busan will be ramped down, with a full closure anticipated in the first quarter of 2024. SKF will remain a local presence in Korea to serve its existing customers there.
The Busan factory currently employs approximately 90 employees and mainly manufactures bearing products for the Automotive industry. During the last years, several attempts have been made to penetrate the Korean domestic market. However, a vast majority of the products manufactured in Busan are still exported to other markets.
By transferring the supply of products to SKF’s factories in Puebla, Mexico, Pune, India, and Shanghai ATC, China, these businesses will be closer to its existing customers. In addition, it will enable these businesses to expand by attracting new local business opportunities. This also supports the Group’s Automotive strategy and the ongoing portfolio re-positioning towards the electric vehicle drivetrain and commercial vehicle segments.
Henry Wang, President Industrial Region China and Northeast Asia, says: “The decision to close our factory in Busan is very difficult to take but it is absolutely vital for us to be close to our customers in order to serve them even better. Transferring the supply of these products also enables us to attract new business opportunities in our different regions.”
“Our focus now is to provide support to our employees in Busan during these challenging times. On behalf of the full management team of SKF, I would also like to express our appreciation for the commitment and dedication they have shown over the years.”
Aktiebolaget SKF
(publ)
For further information, please contact:
PRESS: Carl Bjernstam, Head of Media Relations
tel: 46 31-337 2517; mobile: 46 722-201 893; e-mail: carl.bjernstam@skf.com
INVESTOR RELATIONS: Patrik Stenberg, Head of Investor Relations
tel: 46 31-337 2104; mobile: 46 705-472 104; patrik.stenberg@skf.com
SKF is a world-leading provider of innovative solutions that help industries become more competitive and sustainable. By making products lighter, more efficient, longer lasting, and repairable, we help our customers improve their rotating equipment performance and reduce their environmental impact. Our offering around the rotating shaft includes bearings, seals, lubrication management, condition monitoring, and services. Founded in 1907, SKF is represented in approximately 130 countries and has around 17,000 distributor locations worldwide. Annual sales in 2022 were SEK 96,933 million and the number of employees was 42,641. www.skf.com
® SKF is a registered trademark of the SKF Group.
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