SKF May Further Expand Production

SKF May Further Expand Production Bearing maker SKF (SKFb.ST: Quote, Profile, Research) SKF may need to expand its production capacity further to keep up with demand, its chief executive said in an interview with daily Dagens Industri to be published on Monday. "If growth continues at the current pace another 12 months, we will probably build out our production capacity even further," CEO Tom Johnstone said. The firm is expanding production in Gothenburg, Sweden, and Johnstone said the plant could be further developed or the firm might invest in eastern or western Europe. "We haven't decided which country, but the most likely is somewhere we already have a factory," he said. The company recently had problems obtaining components, which has hit production, raised costs and hurt margins. Johnstone said SKF was increasing the numbers of its suppliers."New and more steel suppliers and higher production capacity, together with rationalisations in the factories will together lead to more normal production in 2008," he said.