In 2009, SKF used a number of different flexible working agreements to handle the lower market demand. In 2010, the company has been working on a program for a more permanent adaption of the manufacturing capacity in Gothenburg, Sweden. The program, which affects around 150 people, was effectively concluded in March and includes early retirement, voluntary compensation, organizational reallocation, and investments in skills and development.
The total cost of the restructuring activities, which will be charged to the income statement in the first quarter, will be around SEK 90 million and will impact the Industrial Division. The benefit of these actions will be around SEK 50 million per year when fully implemented by the third quarter 2010, at the latest.
“We have worked very hard together with the union representatives for over a year to avoid making people redundant, at the same time as we have adapted our cost levels to lower demand,” said Carl Orstadius, managing director, SKF Sverige AB. “We are very glad that we have found a long-term solution that means we can keep important skills and avoid production disruptions.”
SKF is a leading global supplier in the areas of bearings, seals, mechatronics, services and lubrication systems. The group’s service offer includes technical support, maintenance services, engineering consultancy and training. SKF is represented in more than 130 countries and has 15,000 distributor locations worldwide. The group’s annual sales 2009 were SEK 56,227 million; the number of employees was 41,172.