SKF AB (Sweden) and Shanghai Bearing Group Co. Ltd. (China) have signed a joint venture agreement to manufacture deep groove ball bearings in a new plant to be built in Shanghai, China.

SKF will invest 125 million Swedish Crowns (USD $11.5 million) in the venture for a 60% stake. Shanghai Bearing will hold the remaining 40%. The facility will be 9,000 square meters and eventually employ 200 workers.

The new company is expected to push SKF's market share to where it becomes China's third largest bearing company. SKF has four other existing joint ventures, including 20% share in Wafangdian Bearing Co., Ltd., China's largest bearing company.

The target market for the SKF / Shanghai Bearing ball bearing venture is primarily for electric motors of various sizes.