SKF says it will strengthen its manufacturing capacity inChina to respond to growing demand from the domestic Chinese market, as well as to support markets outside China. A new wholly owned subsidiary, SKF (Dalian) Bearings and Precision Technologies Co., Ltd., will build a new factory in the Dalian Economic & Technological Development Area in the North East of China. This new factory will manufacture and recondition large size bearings of different types.
The first phase of the factory will be finished in 2006 and with 85 employees initially. The factory production will be increased stepwise until reaching full capacity with 240 persons. The new company will serve customers segments such as metalworking, power generation, mining and construction.
SKF also plans to increase the capacity in the joint venture for the automotive industry in Shanghai, where SKF holds 70 percent, with one new channel for hub bearing units. Production will also be moved to a new site in Shanghai.
In the joint venture, for deep groove ball bearings for the electrical industry, where SKF holds 60 percent, also in Shanghai, the capacity will be increased by two new channels. This is to respond to increased demand both from the local market as well as from other Asian markets. SKF's total investment for these three projects amounts to some SEK 500 million.
"We have during the last years been growing with good double digit figures in China," says Tom Johnstone, president and CEO of SKF. "To be able to continue to grow with good speed and also to improve our market position in China we need to strengthen our manufacturing capacity in the country. Long term we also see China as an excellent base for exporting both components and products to the rest of the world."