SKF Inaugurates New Capacity in Its Factory in Indonesia

SKF has inaugurated its new factory building in Jakarta, Indonesia where P.T. SKF Indonesia manufactures mainly small deep groove ball bearings. The new building increases the manufacturing capacity significantly. The Asian market is growing rapidly, and in particular the demand for two-wheelers, such as motorcycles and scooters. Asia has around 85% of the global two-wheeler market and has an expected yearly growth of 7%. SKF already has a strong position in Asia and is the clear market leader in Indonesia, where SKF has been present since 1928. In 1997 SKF acquired a manufacturing plant in Jakarta. As the largest supplier of bearings to the Indonesian two-wheeler industry, SKF has continued to invest every year to upgrade the production facilities and add capacity. We have had a very successful cooperation with our partner Astra Honda as well as other leading two-wheeler producers, and have continued to grow with our customers in this emerging market, says Tryggve Sthen, President SKF Automotive division. To support the growing demand from the customers as well as the rest of Asia, SKF decided in 2005 to double the capacity of the factory. The first phase of this investment is now completed with the new factory building, equipped with state-of-the-art technology. The investment program is estimated to be completed in 2009. The aim is to increasingly use Indonesia also as a manufacturing base for the rest of the region. With this additional capacity in the factory we can start further developing export markets, as we look for new business in Asia, says Mr Sthen.