SKF Reports Record Production in Brazil

SKF Reports Record Production in Brazil SKF do Brasil announced 2006 was its most successful year ever, with both production and employment at its Cajamar plant reaching new highs. In 2006, the Brazilian division produced 19 million bearings, up almost 30% from 2005. Included in that figure are 7 million high-value wheel bearing hub units. While 80% of that production went to Brazil's auto and truck industry, 20% was exported, primarily to U.S. and Latin American automakers. Despite many rounds of infrastructure and production investment over the years, Cajamar remains capacity-constrained. The output boost was due, said the division, largely to an ongoing project in Brazil where programs have recently pumped more than USD $7 million into productivity and capacity investments. At least part of Brazil's success has come at the expense of other operations. For example, SKF recently shuttered its wheel bearing hub assembly plant in Aiken, South Carolina, moving some production to Mexico, South Korea and Italy. By November 2005, SKF had added capacity for 5 million hub units to Cajamar; the most recent round of production investment pushed that to 7 million. SKF do Brasil's sales are 80% from automotive bearings and 20% from other automotive components such as water pump bearings, water pumps, auxiliary drive pulley kits, cam belt tensioner kits, hydraulic valves, and sensor-equipped bearings. And with all of Cajamar's production currently dedicated to the auto industry, SKF has indicated plans to one day add industrial bearings, if only to offset the plant's single-market exposure.