SKF AB (Sweden) has divested the U.S. arm of Ovako Ajax Inc. (York, South Carolina) to eXpert Forge & Machine of Delaware Inc. The new company will operate under the name Ajax Rolled Ring and Machine.

Ovako Ajax produces seamless rolled rings in alloy, stainless and carbon steel. The rings are used for bearing races and in the industrial and power generation markets.

Three facilities comprised Ovako Ajax: the York, South Carolina factory in the U.S., a plant in Hofors, Sweden and another in Carnigan, France.

Only the U.S. plant in York is being sold. The smallest of the three plants, York has two production lines while the other factories each have five lines. York's "small ring" Mill #2 produces rings from 250mm to 990mm OD. The "large ring" Mill #1 produces rings from 320mm to 3050mm OD. The maximum finished width is 790mm, and rings are available rough or finished machined.

York employs 67 people; sales in 2001 were USD $19.1 million.

SKF appears to have had several motives in selling York. First, there is overcapacity in the marketplace; Ovako Ajax has had to deal with falling prices. Second, the York plant is the only Ovako operation in the United States (other than sales offices, which are unaffected). Third, the York operation is its smallest and least efficient. Fourth, York's production range overlaps the other facilities, particularly Hofors.

eXpert Forge & Machine is owned by Ronald Mitchell, Derek Eudy and Matthew Pollard. Mr. Mitchell is eXpert's President and CEO. Mr. Eudy and Mr. Pollard also own P & E Machine, a 15-person precision machining house in Kannapolis, North Carolina.

Via a production agreement, Ajax will be able to offer finished machined rings via P & E Machine.

Mr. Mitchell said in an interview, "The industry has been hurting, but wee see an upturn."

Terms of the sale were not disclosed.