SKF Progress Continues With Bulgarian VMZ Acquisition(pic)

SKF AB (Sweden) said it is successfully transforming the former Bulgarian state-run VMZ bearing business into a competitive manufacturer. It manufactures ball bearings as part of SKF's Electrical Division. Vazovski Mashinostroitelni Zavodi -- now named SKF Bearings Bulgaria EOOD -- was acquired in early 2002 from the Bulgarian Privatization Agency. VMZ has four factories: the head office in Sopot, Kalofer, Karnare, and Bogdan. Its state-run situation obvious, VMZ had employed over 1,600 workers. As one of Central Europe's better-known bearing brands, VMZ facilities were at one time almost entirely dedicated to manufacturing military equipment. Its product line includes deep-groove ball bearings from 22mm to 100mm. Visiting VMZ's Sopot facilities for the first time, SKF CEO Tom Johnstone said, "Bulgaria is a good place to do business. I am very pleased that we decided to invest in Bulgaria and I consider our project here as one of SKF's most successful" Mr. Johnstone went on to say SKF has so far invested Leva 10 million ($6.3 million) in the Bulgarian facilities. After receiving ISO 9001 certification in 2003, he said SKF Bearings Bulgaria is now planning to aggressively target export markets, and is on track to double its product line offerings.