SKF concludes strategic review of Aerospace business; strengthens its core business

GOTHENBURG, Sweden, Oct. 27, 2023 /PRNewswire/ -- Following the completion of a strategic review of its Aerospace business, SKF is further strengthening and investing in its Aerospace core areas, but also exploring strategic options to fully or partially exit business lines that are non-core.

SKF's Aerospace business is refocussing around its core areas related to the aeroengine and aerostructure bearing offers. These areas will be further strengthened through accelerated investments, including digitalization, automation, and additional modernization activities of the Group's factories.

Rickard Gustafson, President and CEO, says: "The Aerospace Industry is a high-growth, high-tech industry. We have strong positions within the industry, where we will continue to play an important role. By focusing on our core business and seeking strategic options to areas outside of our core, we will unlock the full potential of this business."

SKF is exploring options to exit high-quality business lines that are non-strategic to the future platform of SKF Aerospace. These are related to the aerospace businesses in the Group's Hanover and Elgin facilities which include mechanical seals, rings, and precision elastomeric devices (PEDs). These businesses represent annual sales of approximately SEK 1 billion.

Thomas Fröst, President, Independent & Emerging Business, says: "By focusing on core areas with accelerating investments, we will be an even stronger partner to our Aerospace customers. Hanover and Elgin are high-quality businesses, but outside of our core. These high-performing organizations with attractive business prospects will have even greater potential with the right owner or partner."

As with other business and product areas, SKF will also continue to diligently work to further improve the business excellence within its Aerospace business, for example by strengthening supplier relationships, actively managing the portfolio, and ensuring world-class operations.

Aktiebolaget SKF
      (publ)

For further information, please contact:

PRESS: Carl Bjernstam, Head of Media Relations
tel: 46 31-337 2517; mobile: 46 722-201 893; e-mail: carl.bjernstam@skf.com 

INVESTOR RELATIONS: Patrik Stenberg, Head of Investor Relations
tel: 46 31-337 2104; mobile: 46 705-472 104; patrik.stenberg@skf.com 

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