SKF consolidates manufacturing facilities in America

2016 June 09, 10:56

Lansdale, Pa., June 9, 2016 – SKF USA Inc. today announces the consolidation of its manufacturing facilities in America, including the closure of its sites in San Diego, CA and Baltimore, MD.

The total project costs are expected to amount to around $37 million, of which around   $12 million will be accounted for during Q2 2016 and the remainder as they occur. The consolidation is expected to generate full year cost savings of around $27 million from 2019, whereof around $9 million is expected to be achieved in 2018.

Production will be transferred from our site in Hanover, PA, to Flowery Branch, GA.  Taking customer commitments into account, the move will consolidate production of spherical roller bearings and large-size roller bearings into our existing bearing manufacturing operations in Flowery Branch. With a stronger, more efficient manufacturing base, the Group will be better able to serve its North American customers.

Production of rings and seals for the aerospace industry will be relocated to Hanover from SKF’s existing factory in Baltimore, MD, which will be closed. Discussions over the effects this will have on employees in Hanover and Baltimore will occur with their respective employee representatives.

Investments will be made in upgrading machinery and manufacturing processes in Hanover and Flowery Branch, part of SKF’s strategy to implement world-class manufacturing technologies.

Manufacturing and development of condition monitoring solutions will be moved from SKF’s existing site in San Diego, CA, to other sites in Europe. This will enable us to offer customers better condition monitoring solutions, faster, as the development team will be centralized in the same region, close to the rest of SKF’s technical competence centers across Europe. A technical support team will remain in San Diego, but in a separate facility.

Consolidation of the sites in Hanover, Flowery Branch, Baltimore and San Diego is expected to take approximately 18-24 months.

Monique Turner, +1 267-436-6836; +1 215-801-8722; monique.turner@skf.com

SKF is a leading global supplier of bearings, seals, mechatronics, lubrication systems, and services which include technical support, maintenance and reliability services, engineering consulting and training. SKF is represented in more than 130 countries and has around 17,000 distributor locations worldwide. Annual sales in 2015 were SEK 75 997 million ($9.3 billion) and the number of employees was 46 635.

® SKF is a registered trademark of the SKF Group.

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