SKF Ltd. (India, a division of SKF AB, Sweden) and Suzlon Energy (India) have signed a five-year strategic supply contract. SKF will supply Suzlon's manufacturing facilities in India with main shaft bearings and slewing ring bearings for the company's wind turbines.

The contract runs through 2013, with an estimated value of USD $428 million over those five years.

SKF will reportedly import all of the bearings initially. But by the end of 2009, SKF plans for them to be produced at a new large bearing manufacturing facility currently under construction in Ahmedabad, Gujarat. Budgeted at more than $62 million, it will be twice the size of the Haridwar automotive bearing plant which had begun construction but is now on hold.

The new Ahmedabad large bearing plant was originally announced a year ago, although the contract with Suzlon -- which will account for virtually all of its production -- was only recently revealed.

article: SKF will build plant for large bearings in Ahmedabad
At the time Ahmedabad was announced, Tom Johnstone, SKF President and CEO, said: "Although India's share of our global turnover is only around 3% to 4%, it is one of the fastest growing markets, and involves some of our biggest investments."

SKF will also supply the automated lubrication systems for those Suzlon turbine bearings.

Suzlon is an important contract win for SKF, as it is one of the world's largest customers in the wind turbine market. Suzlon is vertically integrated, designing, manufacturing, assembling, installing, operating and maintaining wind power turbines, from individual installations to entire wind farms.

SKF said: "This is an important agreement for SKF as it positions us strongly in the energy industry and in the large size bearings segment. Suzlon is an established name in the wind energy sector and SKF is very happy to be working with Suzlon."