Swedish ball and roller bearing specialist, SKF, is reducing its dependence on the automotive industry, in sharp contrast to its main competitor Schaeffler, which is increasing its automotive business by acquiring Continental.
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SKF board chairman Tom Johnstone told the Frankfurter Allgemeine Zeitung newspaper that “We have a different roadmap.”
Johnstone said that he expects Schaeffler to remain a strong competitor in bearings. Schaefller is larger than SKF, capitalized at EUR8.9bn compared to SKF’s EUR6.3bn. The addition of Continental to Schaeffler’s portfolio will add a further EUR11bn.
In the roller bearing market SKF is market leader with a 17% share, according to the newspaper. Other major competitors are Japan’s NSK and Timken from the US.
SKF’s strategy is contrasted with Schaeffler’s. SKF is not looking for a major acquisition and is certainly not looking to enter into any new business areas, said Johnstone. But the most important difference is that SKF wants to reduce its dependence on the automotive industry.
Johnstone said that SKF is continuing to invest in the automotive industry, but that it is investing much more to build up other business sectors. The automotive industry currently accounts for 30% of SKF’s turnover, but contributes less than 16% of the operating profit.
