STOCKHOLM (dpa-AFX) - SKF is consolidating its manufacturing footprint in the Americas as part of the ongoing separation of its Automotive business. The move is designed to strengthen long-term efficiency and competitiveness. As a result, the company's factory in Monterrey, Mexico, will become redundant, with manufacturing capacity relocated to bolster SKF's Automotive operations in Puebla and its Industrial operations in La Silla, also located in the Monterrey area.
The Monterrey facility was originally established as a shared site for both Industrial and Automotive divisions, intended to support a forecasted increase in demand for electric vehicles (EV) in the region. However, following the decision to separate the businesses and the slower-than-expected EV growth, the facility now exceeds the operational requirements of each individual business. The new manufacturing set-up is expected to deliver greater efficiency and competitiveness, while maintaining the flexibility to meet future electrification demand.
The consolidation will lead to approximately 390 redundancies at the Monterrey site, while around 100 new roles will be created at the Puebla and La Silla facilities. The restructuring cost, estimated at SEK 0.5 billion, will be charged in the second quarter and is included in SKF's full-year 2026 guidance for Items affecting comparability.
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