SKF Closes Factory in Busan, Korea, Increases Localization

SKF, a global manufacturing company, announced plans to transfer the production of its bearing products from its Busan, Korea, facility to factories in China, India and Mexico. This move, anticipated to fully close the Busan site by the first quarter of 2024, is part of SKF’s ongoing strategy focusing on regionalization. Despite the closure, SKF will maintain its presence in Korea to continue serving its existing customers.

The Busan factory, employing around 90 workers, has primarily produced bearings for the automotive industry. Despite efforts to expand into the Korean domestic market, most of the products from this facility have been exported.

The shift in production to SKF’s facilities in Puebla, Mexico; Pune, India; and Shanghai ATC, China, aims to bring the company closer to its existing customer base. It also aligns with SKF’s strategy to reposition its portfolio toward electric vehicle drivetrains and commercial vehicle segments, and to tap into new local business opportunities.

Henry Wang, president of industrial region China and Northeast Asia at SKF, commented on the closure, saying, “The decision to close our factory in Busan is very difficult to take but it is absolutely vital for us to be close to our customers in order to serve them even better. Transferring the supply of these products also enables us to attract new business opportunities in our different regions.”