SKF AB (Sweden; Stockholm: SKFA) said it will invest at least €12 million (USD $16.4 million) at its Avallon facility in Bourgogne, France.

Avallon opened in 1932 and was acquired by SKF as part of Pasquier SA in 1965. Now covering 14,000 square meters, the facility employs over 250 people manufacturing large, high-precision bearings ranging from 50mm through 14m OD. Annual sales are in the range of €30 million ($41 million), 90% of which is exported.

The plant's key product line -- accounting for more than 40% of its output -- is bearings for wind mills; specifically blades and nacelles. As one of the strongest-growing sectors of the bearing industry, the wind energy market is expected to drive Avallon's direction a long time to come.

Although Avallon had capacity added in the last year, SKF said its target is to more than quadruple the plant's capacity and output by 2010. This would push the facility's combined volume from its current 12,000 bearings per year to close to 50,000 per year.

In addition to wind energy applications, Avallon also manufactures bearings for large earthmoving and drilling / tunneling equipment, including the massive tunneling equipment used to bore large rail and highway tunnels. Bearings produced at Avallon also equip the London Eye, LeClerc tanks, and various rail and material handling applications.

SKF said it will be adding a satellite R&D center at Avallon, budgeted at €2 million and employing 10 engineers.