SKF restructures in Mühlheim, Germany

SKF restructures in Mühlheim, Germany The restructuring of SKF's Automotive Division, which is part of the Group's ongoing profit-improvement program, is resulting in changes being made to the manufacturing program at the Group plant in Mühlheim, Germany. The changes mean that the work force will be reduced by approximately 100 personnel. The Mühlheim plant manufactures a large number of special products for the automotive industry. The plant will now concentrate its operations to the production of bushings and universal joint bearings, segments in which the company has a strong market position and the plant has highly developed production technology. The manufacture of a number of other products, such as steering column bearings and belt-tension units, will be transferred to the Group plant in St. Cyr, France, where a platform for the manufacture of these products already exists. Through these changes, the plants in Mühlheim and St. Cyr will gain a stronger manufacturing base, which will contribute toward improving the profitability of the Group's special automotive products operations. Concurrent with these changes, SKF's production of needle roller bearings in the Mühlheim plant will gradually be phased out. Despite the termination of its own production of this type of bearing, the Group will continue to supply its customers with externally sourced needle roller bearings. Göteborg, September 22, 1998 Aktiebolaget SKF (publ.) For further information, please contact: Lars G Malmer, SKF Group Communication, tel +46-31-3371541, lars.g.malmer@skf.com Åke Svanberg, SKF Group Communication, tel +46-31-3372005, ake.svanberg@skf.com Aktiebolaget SKF, SE-415 50 Göteborg, Sweden tel: +46-31-3371000, fax: +46-31-3372832, www.skf.com