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The eBearing News
June 30, 2005
SKF Closing Aiken Hub
and Springfield Seal Plants
copyright © 2005 eBearing Inc.
SKF AB (Sweden) announced it will be closing two plants in the United States, citing
continued pressures in the auto industry.
By the end of 2006, the wheel bearing hub assembly plant in Aiken, South Carolina, and the
CR Seal plant in Springfield, South Dakota will be closed.
Aiken's fate, in particular, comes as a surprise to many in the bearing industry.
Built in 1997, vertically integrated and employing state-of-the-art equipment and
processes, Aiken was widely assumed
to be one of the world's most cost-effective and productive wheel bearing hub assembly
manufacturing operations.
According to the Aiken-Edgefield Economic Partnership, SKF spent at least $115 million
building the 250,000 square foot Aiken hub plant. But in SKF's decision to close the facility before
its tenth anniversary, many note it has also been operating far below capacity. The plant
currently employs approximately 250 workers, all of whom will lose their jobs.
The SKF / Chicago Rawhide plant closing in Springfield, South Dakota was less of a surprise.
Chicago Rawhide has an overabundance of manufacturing operations in the U.S., and
the company recently shuttered a Chicago Rawhide seal plant in Franklin, North Carolina.
• 2003 article: SKF Closing Franklin seal plant
Making the announcements, SKF said: "The restructuring of the U.S. automotive industry
and the weaker marketplace have led to strong pressure on the profitability for many companies
supplying this industry. To reduce cost and remain competitive, SKF has decided to consolidate
its U.S. operations."
SKF Automotive Division President Tryggve Sthen said, "Our OE automotive business in the U.S. is
under very tough pressure and we need to take these measures to restore our profitability in the U.S."
In its announcement, SKF said the majority of Aiken's hub production will be transferred to
Puebla, Mexico. Other sources indicate production may also be shifted to SKF Hanwha in South Korea and
SKF Automotive Division in Airasca, Italy.
SKF de Mexico, founded in 1920, started manufacturing bearings under the SKF brand at Puebla
in 1988. The 450,000 square foot plant employs approximately 400 workers producing large
spherical roller bearings, ball bearings, and mounted bearings. It does not currently produce
automotive or truck wheel hub assemblies, and SKF did not indicate what employment impact the
new product lines would have for Puebla.
After Aiken, SKF's has one other U.S. wheel hub manufacturing operation, in Glasgow, Kentucky.
So far, it is not involved in this latest restructuring effort, and in fact recently moved some
Ford front wheel hub production there from Airasca.
The SKF / Chicago Rawhide seal plant in Springfield is another relatively recently-constructed
facility, built in 1975.
Seals from Springfield will be moved to CR Mexicana in Guadalajara, Mexico and another plant in
Elgin, Illinois. Two other plants, in Hobart, Oklahoma, and Seneca, Kansas, are as yet unaffected.
The Springfield closing is a serious blow to that area, as CR / SKF was the area's largest
employer with approximately 210 workers. Layoffs will begin by fourth quarter 2005, and like
Aiken, the plant will be shuttered by the end of 2006.
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
trademarks of eBearing Inc.
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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