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SKF Boosts Localization in the Americas and Asia

SKF

SKF has announced the relocation of product supply from its Busan, Korea factory to China, India, and Mexico, aligning with the

SKF has announced the relocation of product supply from its Busan, Korea factory to China, India, and Mexico, aligning with the Group’s ongoing regionalization strategy. Following a comprehensive business review and exploration of alternative options, the decision has been made to gradually phase out the manufacturing site in Busan, with a planned complete closure in the first quarter of 2024. SKF will maintain a local presence in Korea to continue serving its existing customer base.

The Busan factory currently employs approximately 90 employees and mainly manufactures bearing products for the Automotive industry. During the last years, several attempts have been made to penetrate the Korean domestic market. However, a vast majority of the products manufactured in Busan are still exported to other markets.

By transferring the supply of products to SKF’s factories in Puebla, Mexico, Pune, India, and Shanghai ATC, China, these businesses will be closer to its existing customers. In addition, it will enable these businesses to expand by attracting new local business opportunities. This also supports the Group’s Automotive strategy and the ongoing portfolio re-positioning towards the electric vehicle drivetrain and commercial vehicle segments.

Henry Wang, President Industrial Region China and Northeast Asia, says: “The decision to close our factory in Busan is very difficult to take but it is absolutely vital for us to be close to our customers in order to serve them even better. Transferring the supply of these products also enables us to attract new business opportunities in our different regions.”

“Our focus now is to provide support to our employees in Busan during these challenging times. On behalf of the full management team of SKF, I would also like to express our appreciation for the commitment and dedication they have shown over the years.”

SOURCE: SKF Group

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