SKF postpones Rs 150 crore Plant at Haridwar
SKF India, the largest supplier of automotive bearings, has announced the postponement of its new manufacturing facility at Haridwar, which was to be set up at a cost of Rs 150 crore.
Rakesh Makhija, Managing Director, SKF India stated “We have decided to postpone work at the Haridwar plant due to a slowdown in market demand. However, there is not much impact on the demand for industrial products and our Rs 300-crore investment in the other plant at Ahmedabad, which will make equipment for the industrial sector, is on track. The plant will be operational next year.”
Globally, the Swedish parent company AB SKF, owing to a demand skid has already shut one of its North American plants and laid off some of the staff. But operations in India have not suffered.
AB SKF president and CEO, Tom Johnstone said “We have parted ways with 100 temporary workers in the US and more can happen if there is no improvement in the economic situation in the near future. India is a different market, as we are investing in two new facilities at Ahmedabad and Haridwar, so we will increase our workforce to 3,300 from the current 2,600 in the next two years.”
Mr. Johnstone further added, “On a regular basis we invest about Rs 100 crore every 18 months and this will continue.” SKF, besides bearing, also provides services, manufactures seals, lubricating systems and mechatronics. In the third quarter ended September, the company reported net sales of Rs 430.4 crore with profit after tax of Rs 37 crore.