SKF AB (Sweden; Stockholm: SKFA) said it is in discussions with unions and workers with the intent of shuttering a small super precision bearing manufacturing shop in Stonehouse, UK.

The Stonehouse super precision operation focuses on manufacturing high precision bearings for machine tools. It is on the same site as SKF's aerospace bearing operation which is not part of this shutdown.

SKF's decision to close Stonehouse is an eerie parallel to Timken's decision to shutter its small own UK-based high precision machine tool bearing shop in Willenhall.

article: Timken closing Willenhall
As Timken does in moving Willenhall's production to the United States, SKF intends to continue manufacturing high precision machine tool bearings, but move production elsewhere in Europe. SKF already operates two precision machine tool bearing plants in Italy.

Both companies tie their decisions to weak demand from the machine tool sector.

Sharon Smith, SKF UK Managing Director, said: "Unfortunately, we do not anticipate this trend reversing in the foreseeable future, and therefore have to look at ways to reduce our production costs and overall capacity in line with market demand. We have made a number of cutbacks at all three factories, but the increased severity and speed of decline in demand leaves us with little option but to take far more drastic measures to protect the long term future of our Super Precision Bearings business as a whole."

She indicated there may be opportunities for workers at the aircraft engine bearing plant.

Approximately 80 employees are affected by the closing.