SKF Continues to Streamline Production and Improve Efficiency

SKF has decided to close its manufacturing facility in Glasgow, United States, and to reduce the number of employees at the Fontenay-le-Comte facility in France. These are the most important steps in the Group's ongoing activities to reduce costs and improve efficiency in its operations.

The total cost of these activities amounts to some SEK 360 million. Some SEK 300 million will be taken as restructuring expenses during this year's fourth quarter. The remaining SEK 60 million will be taken during 2008 and 2009. The annual benefit of the programme, fully implemented from 2010, amounts to some SEK 120 million.

The different activities, that will run during 2008 and 2009 and will affect the operations in USA, France and some other countries, will reduce the number of employees with some 500 persons.

The cost of the programme will have a negative impact on the Automotive Division during the fourth quarter 2007 with some SEK 265 million and on the Industrial Division with some SEK 35 million.

The closing of the Glasgow factory and the transfer of the production to the Group's factory in Puebla, Mexico, are necessary to remain competitive in the US automotive market.

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