ERJ staff report (R&PN)
GOTEBORG, Sweden (Nov. 5, 2008) -- SKF AB plans to transfer automotive sealing production from its Elgin, Illinois, facility to other plants in Mexico and the US.
The consolidation is necessary for SKF to remain competitive in the US automotive market, the Goteborg-based company said. About 160 of the 430 Elgin employees will be affected by the decision.
SKF said the consolidation will cost about $7.9 million, of which about $4.6 million will be taken as restructuring expenses in the fourth quarter of this year and about $3.3 million during 2009. The firm said it will have an annual benefit from the change of about $3.9 million, starting in 2010.
The transfer process is expected to take about 12 months
From Rubber & Plastics News (A Crain publication)