Release time : 2015-06-12 11:05:52
SKF AB revealed it has sharply accelerated the announced closing of its wheel bearing hub assembly plant in Glasgow, Kentucky.
Earlier this year, SKF announced it would close Glasgow, moving the plant's automotive and light truck wheel bearing production to Puebla, Mexico.
Meanwhile, the company just announced $73 million in additional Puebla expansion.
Announcing the shutdown, SKF USA President and CEO George Dettloff said: "The U.S. automotive industry continues to restructure as a result of a weak marketplace, leading to increased pressures for companies supplying this segment to maintain profitability. In an effort to remain competitive, SKF has decided to consolidate its North America-based manufacturing operations responsible for supplying the automotive market."
Glasgow was originally set to be phased down over 24 months as tooling and equipment was transferred to Puebla by late 2009. But now that schedule has accelerated by at least six months, and Glasgow will be completely shut down no later than July 2009.
SKF CEO Tore Bertilsson said falling demand from U.S. automakers is behind the decision; several of the hubs produced at Glasgow are in particularly slow-selling vehicles.
After closing Glasgow, SKF will no longer manufacture wheel bearing hub assemblies in the United States.
In 2005, SKF surprised the industry by shuttering its eight-year-old hub assembly manufacturing facility in Aiken, South Carolina.