SKF closes two plants in the United States
Resource from: CBCC Likes:2950
Jun 30,2005
SKF has decided to close its bearing plant in Aiken, South Carolina, and its seals plant in Springfield, South Dakota, in the US. The bearing production will be transferred to SKF's bearing plant in Puebla, Mexico and seals manufacturing to the seals plants in Elgin, Illinois, USA and Guadalajara, Mexico. The two plants in Aiken and Springfield manufacture products for the North American automotive industry and some 460 employees will be affected.
The phasing out process is expected to take place over a period of 18 months.
The restructuring of the US automotive industry and the weaker marketplace have led to strong pressure on the profitability for many companies supplying this industry. To reduce cost and to remain competitive SKF has decided to consolidate its US operations.
- Our OE automotive business in the US is under very tough pressure and we need to take these measures to restore our profitability in the US, says Tryggve Sthen, President SKF Automotive Division. This will enable us to continue to service the US market in an efficient way. The total restructuring cost for this programme is estimated to some SEK 280 millions, of which approximately SEK 190 million will be charged to the profit and loss account in the second quarter 2005. The remaining SEK 90 million will occur gradually during the 18-month period. The amount affecting cash flow of the total restructuring cost is approximately SEK 100 million. In addition, there will be investments in the factories receiving production, amounting to some SEK 40 million.
The profit in the second quarter 2005 will also be affected by one time gains related to the disposal of the shares in the previous subsidiary FlexLink and to the Ovako Steel transaction, in total some SEK 100 million.
Consequently the negative net effect on the SKF Group's operating profit in the second quarter 2005 will be approximately SEK 90 million.
Göteborg, June 29, 2005
()
【CBCC News Statement】
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
BRIEF INTRODUCTION
Cnbearing is the No.1 bearing inquiry system and information service in China, dedicated to helping all bearing users and sellers throughout the world.
Cnbearing is supported by China National Bearing Industry Association, whose operation online is charged by China Bearing Unisun Tech. Co., Ltd.
China Bearing Unisun Tech. Co., Ltd owns all the rights. Since 2000, over 3,000 companies have been registered and enjoyed the company' s complete skillful service, which ranking many aspects in bearing industry at home and abroad with the most authority practical devices in China.
