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The eBearing News
November 2, 2005
SKF Boosts Hub Bearing
Production in Brazil
copyright © 2005 eBearing Inc.
SKF do Brasil (Brazil, a division of SKF AB, Sweden) brought new production capacity
for automotive wheel bearing hub units online at its facility in Cajamar, outside Sao Paulo.
The production capacity added in Cajamar is, "totally dedicated to exports to serve primarily
the United States," in direct counterpoint to SKF's recent announcement it will shutter
a wheel hub bearing manufacturing facility in Aiken, South Carolina.
Aiken, a 250,000 square foot, $115 million facility, was built in 1997.
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. The Cajamar plant was not mentioned.
article: SKF closing Aiken hub bearing plant
Cajamar's lure, said SKF, is the cost structure there leveraged by the plant's demonstrated
ability to produce high quality wheel bearings.
The added capacity, reportedly more than 5 million automotive wheel hub units per year,
will shift toward 40% export production as it ramps up toward capacity.
Currently, Cajamar is almost entirely dedicated to producing bearings for the automotive industry
in the Americas. However, SKF is reportedly investigating the possibility of offsetting that single
market exposure by adding industrial bearings.
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SKF Cajamar
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With Cajamar currently operating at or near full capacity, any additional production requires not only
equipment, but also physical expansion of the facilities.
SKF is also hedging its OEM wheel hub bearing unit market exposure by producing units for the
aftermarket in Cajamar. Aftermarket units are sold into channels traditionally far more
profitable than units sold to OEMs.
SKF do Brasil's sales in 2004 were approximately 120 million reais (USD $54.2 million) -- 80% from
bearings and 20% from other automotive components such as water pump bearings, water pumps, auxiliary
drive pulley kits, cam belt tensioner kits, hydraulic valves, and sensor-equipped bearings.
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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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