Skf Accelerates Glasgow Plant Shutdown

SKF Shifts Production to Mexico

SKF AB has announced that it will accelerate the closure of its wheel bearing hub assembly plant in Glasgow, Kentucky.

Earlier in the year, SKF confirmed plans to transfer production of automotive and light truck wheel bearings to its facility in Puebla, Mexico.

The company has also committed an additional $73 million investment to expand operations in Puebla, reinforcing its strategy to consolidate production in cost-competitive regions.

Reason Behind the Closure

In a statement, SKF USA President and CEO George Dettloff explained: “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.”

Originally, the Glasgow plant was scheduled for a 24-month phase-out, with tooling and equipment transfers expected to be complete by late 2009.

However, the timeline has been accelerated by at least six months, and the facility will now close completely by July 2009.

Declining U.S. Automotive Demand

According to SKF CEO Tore Bertilsson, the decision was driven by falling demand from U.S. automakers. Many of the hubs produced in Glasgow were used in slow-selling vehicle models, making production unsustainable in the current market environment.

End of U.S. Wheel Bearing Hub Assembly Production

Once the Glasgow plant shuts down, SKF will no longer manufacture wheel bearing hub assemblies in the United States.

This is not the first time SKF has consolidated production. In 2005, the company closed its Aiken, South Carolina hub assembly plant, which had only been in operation for eight years, surprising the industry at the time.