SKF in $92 Million Gothenberg Expansion

SKF in $92 Million Gothenberg Expansion SKF AB (Sweden; Stockholm: SKFA) said as part of its worldwide investments in bearing manufacturing facilities, the flagship home office Gothenberg operation is undergoing massive expansion program, budgeted in the neighborhood of SEK 600 million (USD $92 million). The Gothenberg plant primarily manufactures large industrial bearings for markets such as heavy industry, traditional energy, pulp and paper, mining, and wind power. Key export markets are other European countries and Asia. Worldwide, availability of these sizes and types of large industrial bearings has gradually become tighter. Until recently, manufacturers had been reluctant to add expensive production capacity that also takes a relatively long time to bring online. During 2006, demand for Gothenberg-produced bearings grew by 20% but production increased by only 10%. CEO Tom Johnstone said: "Demand for large bearings has grown faster than expected. Wind power, the mining industry, steel industry, and construction work are growing strongly and we see no end to the strong growth." Gothenberg's expansion program also includes an all-new greenfield manufacturing facility, forecast to come online by 2009. In all, two new bearing channels are being added, along with two roller channels, heat treat facilities, new cage/retainer production equipment added, and existing production facilities upgraded for improved productivity and capacity.