US Markets

Bearings maker SKF to invest around 550 mln crowns in North America

Sweden's SKF, the world's biggest maker of ball bearings, said on Tuesday it would invest around 550 million crowns ($62.1 million) to strengthen its North American operations.

STOCKHOLM, Sept 22 (Reuters) - Sweden's SKF SKFb.ST, the world's biggest maker of ball bearings, said on Tuesday it would invest around 550 million crowns ($62.1 million) to strengthen its North American operations.

The company said it would take restructuring costs of around 35 million crowns in the third quarter, as it reduces staff by around 120 employees.

It added that around 350 million crowns would be invested in the Sumter plant in South Carolina, while the rest would be used for localizing manufacturing of tapered roller bearings from China to an existing plant in Mexico.

"The resulting improvements in flexibility and service levels enable the Group to consolidate its factories in Avon, Ohio and North Charleston, South Carolina into the Sumter factory," SKF said in a statement.

It added that consolidation and investments would take between 12 and 18 months to implement.

($1 = 8.8549 Swedish crowns)

(Reporting by Helena Soderpalm; Editing by Simon Johnson)

((helena.soderpalm@thomsonreuters.com; +46 8 700 10 15; Reuters Messaging: helena.soderpalm.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More