SKF plans to consolidate its manufacturing footprint in the Americas as the company continues separating its automotive business. The company said it would designate its factory in Monterrey, Mexico, as redundant and shift production capacity to strengthen automotive operations in Puebla and industrial operations in La Silla.
In September 2024, SKF's board of directors decided to initiate a separation of its automotive division with the goal of listing the business on Nasdaq Stockholm during the first half of 2026.
The relocation will eliminate about 390 roles at the Monterrey site and create roughly 100 new positions in Puebla and La Silla. The consolidation will cost about $53.8 million, which the company will record in the second quarter.
SKF originally established the Monterrey factory as a shared plant for industrial and automotive operations and to support a forecasted increase in demand for electric vehicles in the Americas. Following the decision to separate the businesses, combined with the lower than anticipated EV growth, the Monterrey facility reportedly exceeds the operational requirements of each individual business.
The new manufacturing set-up aims to become more efficient and competitive, while building the capacity to meet growing electrification demand.
