SKF has a transfer of the supply of products from the factory in Busan, Korea, to China, India, and Mexico. Particularly, this is another step in the continuous execution of the Group’s strategy, where regionalization is an important part.

Consequently, and after a thorough business review and consideration of alternative options, it has decided to ramp down its manufacturing site in Busan, Korea. Furthermore, the company anticipates full closure of the facility in the first quarter of 2024.

SKF will remain a local presence in Korea to serve its existing customers there.

Focus on Automotive Strategy

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

By transferring the supply of products to SKF’s factories in Puebla in Mexico, Pune in India, and Shanghai ATC in 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 of 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 to serve them even better. Transferring the supply of these products also enables us to attract new business opportunities in our different regions.”

Furthermore, Wang said the focus now is to provide support to its 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.”

Opens New Mexico Facility

Recently, SKF inaugurated a new facility in Monterrey, Mexico. SKF expects the new Monterrey factory to generate some 1,200 jobs once fully operational. 

SKF is a world-leading provider of innovative solutions that help industries become more competitive and sustainable.

Particularly, by making products lighter, more efficient, longer lasting, and repairable, SKF helps customers improve their rotating equipment performance. In addition, reduce their environmental impact.

SKF’s offering around the rotating shaft includes bearings, seals, lubrication management, condition monitoring, and services.

Founded in 1907, SKF has a presence in approximately 129 countries and has around 17,000 distributor locations worldwide.