SKF USA Inc. today announced plans to transfer the production of its factory in Hobart, Okla., to other SKF sealing facilities in North America. This move will result in the eventual closure of the Hobart plant within the next two years.
The SKF Sealing Solutions Hobart plant manufactures wheel-end seals for heavy-duty trucks and automotive seals for a variety of automotive original equipment (OE) customers, as well as replacement products sold through distribution. Manufacturing of the products will be transferred to existing sealing facilities in Seneca, Kan., and Guadalajara, Mexico, in addition to a new facility planned near the Guadalajara area.
“This consolidation is being initiated in consideration of the continued competitive North American market, the movement of some of the plant’s key OE customers to Mexico and a very limited labor pool in the central Oklahoma area,” said Gregg Rasmussen, president of SKF Sealing Solutions. “Relocating the manufacturing will help to ensure short delivery times, high flexibility and the superior customer service demanded in the seal market.”
“It’s a difficult decision to close a plant that we established more than 35 years ago and that has been a valuable part of our supply network,” said Tom Quatsoe, head of manufacturing for SKF Sealing Solutions, North America. “However, the importance of proximity to other SKF facilities, our key customers and suppliers has become a time-critical factor. Labor stability also is key, because the small and declining population in the surrounding Oklahoma counties cannot sustain the large, steady, three-shift workforce that is needed for today’s flexible, lean manufacturing.”
The consolidation process is expected to take place during a period of 24 months and will affect 225 employees.
The SKF Automotive Market represents approximately one-third of the total worldwide sales of SKF, and it globally serves customers in the automotive and heavy truck OE and aftermarket segments. It includes the SKF Sealing Solutions business unit that has global responsibility for rotating-shaft seal product development and production for industrial, automotive and truck segments.
SKF is a leading global supplier of bearings, seals, mechatronics, lubrication systems, and services which include technical support, maintenance and reliability services, engineering consulting and training. SKF is represented in more than 130 countries and has around 15,000 distributor locations worldwide. Annual sales in 2014 were SEK 70,975 million ($8.5 billion) and the number of employees was 48,593. www.skf.com.
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