SKF to become 3rd biggest bearing supplier in China
Gteborg, Sweden -- SKF has signed a joint venture contract with Shanghai Bearing (Group) Co. Ltd. (SBC), part of S...
Gteborg, Sweden — SKF has signed a joint venture contract with Shanghai Bearing (Group) Co. Ltd. (SBC), part of Shanghai Electrical Group Corporation in China, to establish a company to manufacture and sell high-performance, deep-groove ball bearings. SKF holds 60 per cent in the new joint venture and SBC 40 per cent.
The market segment to be served is mainly electrical motors, automotive electrical components, power tools, household appliances and two-wheeled vehicles. This is a fast growing market in China and the production is planned to start in 12 months’ time.
The joint venture will rent a new 9,000 sq m factory that is to be built in Shanghai. The joint venture will invest about C$17 million in the project and will employ 200 when the factory is working at full capacity.
With this new investment SKF has five joint venture companies, one sales company, seven representative offices and one holding company in China. SKF also holds 20 per cent of the shares in China’s biggest bearing manufacturer, Wafangdian Bearing Co. Ltd.
Total turnover of SKF in China will, with the new joint venture, increase with some 15 per cent and SKF will become the third biggest bearing company in the Chinese bearing market.