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The eBearing News
September 20, 2005

SKF Building Second
Bearing Factory in Indonesia
copyright © 2005 eBearing Inc.

SKF AB (Sweden) announced it will build a second bearing manufacturing plant outside Cakung, Jakarta Timur, Indonesia, alongside its existing facility built in 1997.

The new plant, scheduled to come online in mid-2007, will produce deep groove ball bearings to meet fast-growing demand from Asia's diverse two-wheeler market. The second facility will essentially double the company's production capacity there.

SKF said the plant will cost in the neighborhood of SEK 200 million (USD $26 million) and eventually employ more than 200 workers.

Worldwide, production of various two-wheelers hit 38 million in 2004, but more than 80% were sold in Asia. Through 2007, SKF said the two-wheeler market will continue to grow quickly -- by as much as 25%, or reaching almost 48 million.

SKF is the market leader in bearings to the Asian two-wheeler OEMs, supplying companies such as Honda, Suzuki, Kawasaki, Yamaha, Piaggio, Vespa, and Bosowa.

Currently, SKF manufactures ball bearings for the Asian two-wheeler market at its plants in India and Indonesia. But the second Indonesian plant is needed to meet demand or risk losing its two-wheeler market leadership position.

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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Bruce Carr edited this content.
Copyrighted material; unauthorized reproduction prohibited.

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