SKF is spending SEK700m on a new, greenfield factory in Monterrey, Mexico which will produce products for electric vehicle drivetrain and commercial vehicle markets in North America, as well as for industrial applications.
The investment will create a strong regional base for the development and manufacturing of high performance, deep groove ball bearings (DGBB) for North American car manufacturers and tapered roller bearings (TRB) for industrial and commercial vehicle applications.
David Johansson, SKF president, automotive, said: “These investments are an important step in further strengthening our capability and offers within the EV and commercial vehicle segments in North America, whilst at the same time securing a regional supply chain that complements our existing capabilities in Europe and Asia.
“Monterrey is strategically located: near many of our customers and partners in Mexico, with developed logistics channels to major distribution hubs in the US.”
John Schmidt, president, Americas, added: “Increasing our regional capabilities in the Americas reduces our reliance on imports from other regions, making us stronger, more flexible and competitive in a range of applications.”
The first production lines are expected to open in mid-2023. SKF workers from the Americas, India, China and Europe are involved in the technology and competence ramp-up of the factory which is expected to generate 1,200 jobs once fully operational.