SKF AB (Sweden; Stockholm: SKFB) announced a series of cost-control initiatives, targeting not only its slowing automotive OEM-oriented operations, but also industrial and formerly off-limits units in Asia.

Several observers told eBearing they believe the effort is probably no more than a periodically-required house cleaning. SKF has made a number of acquisitions and reoriented many of its business units and production focus, leaving worldwide operations necessarily out of sync.

SKF said the efforts will reduce costs and improve productivity and efficiency, amounting to SEK 160 million per year (USD $23.4 million) , beginning in 2007.

Total costs will be in the neighborhood of SEK 400 million ($58.4 million), which includes closing its bearing plant in Uitenhage, South Africa.

article: SKF closing Uitenhage, South Africa bearing plant
Of the SEK 400 million, SEK 260 million will be impairments and write-downs.

Approximately 1,000 people will be laid off from bearing plants in South Africa (134 workers), Italy, China, and other facilities in other countries.

Automotive Division will see restructuring costs of approximately SEK 160 million ($23.4 million); Industrial Division will be approximately SEK 220 million ($32.1 million). Even the well-performing Service Division will be hit, as SEK 20 million ($3 million).

All of the costs are expected to be incurred in 2007, with the programs designed, implemented, and executed by year-end.