SKF Closing CR Franklin Seal Plant,Curtails Guadalajara Operations

SKF USA Inc. (a division of SKF AB, Sweden) announced the latest in a series of North American manufacturing restructuring moves, this time involving Chicago Rawhide seal plants. The CR seal manufacturing plant in Franklin, North Carolina, will be closed and production transferred to other manufacturing facilities in North America. Founded in 1878, Chicago Rawhide was purchased by SKF in 1990 and is part of SKF Automotive Division. The other North American facilities are in Elgin, Illinois; Springfield, South Dakota; Hobart, Oklahoma; and Seneca, Kansas. The Springfield plant dates to 1975 and Hobart recently celebrated its 25th anniversary. Located on a 21 acre site on Industrial Park Road, CR's 50,000 square foot Franklin plant currently employs approximately 150 people and is one of the area's largest employers. SKF said Franklin's product line is now, "standard line seals for various industrial consumer segments in North America." In late December 1996, the entire Franklin facility was sold to and then leased back from Lexington Corporate Properties. On that 18 year lease, 11 years are still remaining. Ironically, another of the Franklin area's largest employers is literally next door, Caterpillar Precision Seals, owned by CR until 1995. Caterpillar Precision seals produces highly specialized abrasion-resistant precision metal faced seals for use in applications such as heavy industrial and military vehicles. The other move announced by SKF is the outsourcing of component stamping operations from its CR Mexicana S.A. de C.V. plant in Guadalajara. Other operations will remain at Guadalajara, which CR acquired full control of in mid-1998. The facility employs over 300 people and services automotive, truck and industrial segments. Overall, SKF said the two moves will result in 170 people losing their jobs as the operations are phased out at Guadalajara and the Franklin plant closed down by the end of 2004.