SKF opens new plant in China for local automakers

Shanghai, September 10 (Gasgoo.com) The Swedish bearing-maker SKF opens its new plant in Shanghai yesterday, a plant which is to support the rapid-growing demand from the local automakers in China.

Tryggve Sthen(second from right) at the ribbon-cutting ceremony for SKF's new plant
in Shanghai

The wholly-owned plant, SKF (Shanghai) Automotive Technologies Co. Ltd., was inaugurated with a first-phase investment of US$25 million. Production of hub bearing units for cars has already started with more production lines to be added. Also an automotive technology center will soon be set up in this facility to support SKF's strategic growth in China.

"It's much more than the revenue it generated today; it's the revenues generated for the years to come, and that's equally important," said Tryggve Sthen, President of SKF Automotive Division. He said that the new plant will largely solve the problem that the local demand outpaced SKF's capacity.

Also SKF is to tap the fast-growing commercial vehicle market of China, which also shows an increasing trend of export." We're already in talks with several commercial vehicle manufacturers in China, and expect to have some positive outcome," he said. SKF's automotive business in China up to now is mainly in the passenger vehicle sector, with both foreign-brand and home-grown automakers as its customers.

In order to increase SKF's product assortments coverage in the aftermarket segment in China, kitting and packing operations will be carried out within the Shanghai-based new facility.

SKF started local production in China about 15 year ago but has longer history of doing business in the country. Here SKF has 10 manufacturing units, one solution factory for service and an SKF College, employing more than 3,000 employees.