SKF AB (Sweden; Stockholm: SKFA) has launched production at its tenth plant in China, SKF (Shanghai) Automotive Technologies Co. Ltd.

The facility, located in Anting Auto Town, Shanghai, manufactures wheel bearing hub assembly units for automakers in China and for the country's growing aftermarket. The plant's first phase budget was approximately USD $25 million.

SKF's nine other Chinese plants are located in Beijing, Shanghai, Dalian and Wuhu.

A new plant was needed because SKF's existing factories in China were already operating at or near capacity, and demand from China's automakers is expected to continue increasing. Also, SKF will need additional capacity if it makes progress winning customers in China's truck market.

At the plant opening ceremony, Tryggve Sthen, President of SKF Automotive Division, said: "It's much more than the revenue generated today; it's the revenues generated for the years to come, and that's equally important."

In the near future, an automotive technology center will also be located in the new facility to support SKF's automotive strategic growth initiatives in China.

To help move the hub bearings and expand its aftermarket presence in China, the plant includes facilities for kitting and packaging.