SKF Expands in China.(joint venture with Shanghai Bearing (Group) Company Ltd.)(Brief Article)

SKF has signed a joint venture contract with Shanghai Bearing (Group) Co. Ltd, (SBC), part of Shanghai Electrical Group Corp., to establish a company to manufacture and sell high performance deep groove ball bearings. SKF holds 60 percent in the new joint venture and SBC 40 percent.

The market segment to be served includes automotive electrical components, the company said. Production is planned to start in 12 months' time. The joint venture will rent the new 9,000 sq. meter factory building that is to be built in Shanghai. The joint venture will invest some $11.5 million in the project and will employ 200 persons when the factory is working at full capacity, the company said.

With this new investment SKF said it has five joint venture companies, one sales company, seven representative offices and one holding company in China. SKF is also holding 20 percent of the shares in China's biggest bearing manufacturer, Wafangdian Bearing Co., Ltd.

Total sales of SKF in China will, with the new joint venture, increase with some 15 percent and SKF will become the third biggest bearing company in the Chinese bearing market, the company said.

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