A Weekend Fire Hit Specialty Engine Bearing Plant

A weekend fire recently hit the Glacier Vandervell Bearings (a division of Dana Corp., USA) specialty engine bearing plant in Bathgate, West Lothian, near Edinburgh. Firefighters reportedly spent more than seven hours battling the blaze which originated in the ventilation system. The effort also included wetting down potentially hazardous chemicals and raw materials such as lead. No one was injured in the blaze. The Bathgate plant, relocated from England in 1992, originally manufactured bearings for heavy truck and high-performance automotive engines. Glacier faced the same issues as other engine bearing producers, however, as the market became increasingly price-driven and commoditized. Battling commoditization and trying to refocus on more profitable markets, Glacier essentially repurposed the Bathgate facility to manufacture specialty motorsports engine bearings. Established in 1998, the dedicated racing engine bearing unit has now become the leading supplier of engine bearings for high-end motorsports applications, including ultra-demanding Formula 1 race engines. The fire was also poorly timed, coming as it did early in the motorsports season and having the potential to disrupt teams as they ramp up engine and chassis programs. And this year, Formula 1's engine specification transitions to 8 cylinders from the previous 3 liter 10 cylinder spec. With a sales growth rate exceeding 500% since 1998, the decision to move into motorsports has proven to be a positive move away from commoditized engine bearings at Bathgate. The shift also required significant ongoing investments in research and development, along with manufacturing technology, but has not saved the location from several rounds of layoffs. The most recent round cut 160 jobs in 2003. In late 2005, Dana put Glacier Vandervell up for sale, as a "nonstrategic" asset which never produced the profits Dana expected. Dana acquired Glacier Vandervell Bearings in 1988 from Federal-Mogul Corp. for $410 million. To date, Dana has made no public announcements about the future of Glacier Vandervell, and of the plain bearing manufacturers none claimed interest.