SKF AB (Sweden; Stockholm: SKFA) has released additional details about its previously announced rail bearing plant in the Russian Federation.
The plant will be located in the city of Tver', in Tver' Oblast, approximately 100km northwest of Moscow.
A greenfield facility, it will be situated on a plat of land at least 100,000 square meters (25 acres) and is budgeted at more than USD $40 million. Specifically, the plant will be in the Boroblevo-2 industrial zone in the Kalininsky district.
Tver' will produce specialty tapered roller bearing units specifically for Russia's rail infrastructure, which in addition to growing is also converting its rolling stock from conventional axlebox mounted roller bearings to sealed tapered roller bearing units. Russian Railways, RZD, will be SKF's primary customer.
Construction at Tver' is slated to begin in September, with completion late in 2009 and first bearing production forecast for January 2010. The facility will eventually employ as many as 150 people.
Recent announcements by Tver regional development authorities pegged the plant at USD $117 million, after building out in three stages. On their announced timetable, the third stage would be complete by 2012 and by then Tver' would employ as many as 750 workers with yearly production approaching 450,000 bearings.
In addition to vertically integrated bearing manufacturing, Tver' will also offer rail bearing reconditioning services.
Dmitry Zelenin, Governor of Tver' Region, said: "We are delighted to welcome SKF in Tver'. Our region is in rapid growth and attracts investors from all over the world. It is a great pleasure for us to have SKF investing in our region showing strong commitment to the railway industry here in Tver'".
Tom Johnstone, SKF's President, said: "Russia is a very important railway market which, is in a dynamic phase of growth. SKF is working actively in this market and the investment in Tver' will both support our growth in Russia and strengthen SKF's position within the global railway market."
SKF began operating in Russia in 1991, and now has operations in Moscow, St Petersburg, Krasnoyarsk, Vladivostok, and Magnitogorsk.
Something You Probably Didn't Know: Buffalo, New York is the U.S. sister city of Tver'.
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