SKF Dalian Bearings and Precision Technologies Co. Ltd. (China; a division of SKF AB, Sweden) has completed its second round of investment, of three planned. The project began in 2005 with an initial investment of approximately SEK450 million (USD $64 million).

After this second expansion -- which doubles the plant's capacity, largely in the area of wind turbine bearings -- SKF's investment in Dalian tops SEK 1.1 billion ($156 million), making it one of China's largest overseas investment projects.

2005 article: SKF building factory Dalian, China
2008 article: SKF ramps up Dalian investment
The Dalian plant now covers 105,000 square meters (1.1 million square feet) and is dedicated to producing large and medium sized bearings. Although wind turbine bearings are the plant's major focus, accounting for nearly 75% of production, it also supports SKF's Asian operations in the metalworking, mining, construction and industrial transmission markets.

When it reaches full capacity, SKF Dalian will employ nearly 600 workers, double the current number. In 2007 and 2008, SKF received the Dalian Preferred Employer Award, and in 2009, the Dalian Trusted Employer Award. In Dalian, SKF has another joint venture -- SKF Wazhou -- with Wafangdian Bearings Co. Ltd.

SKF Dalian has also recently entered into a venture with Sinovel Wind Co. Ltd., one of China's largest wind turbine manufacturers. The agreement builds a foundation for SKF and Sinovel to jointly develop supply chains, train and develop staff, cover engineering development and design, as well as manage project resources.

Formalizing the relationship with Sinovel is a key entry point for SKF into China's fast-growing wind turbine industry. In 2008, Sinovel's wind turbines accounted for nearly 23% of China's newly installed capacity -- 935 turbines, with a total capacity of 1,400 MW. And because Sinovel concentrates on larger 3MW turbines, its turbines now produce the most power on the grid in China. The company is now developing a more advanced 5MW 5251R9N7 offshore turbine.

In 2010 alone, the value of SKF's supplier contracts with Sinovel for 3MW wind turbines totals more than SEK 330 million ($47 million), covering main shaft bearings and sealing systems.