SKF presents new strategic framework, together with a decentralized working mannequin

GOTHENBURG, Sweden, Feb. 3, 2022 /PRNewswire/ — Rickard Gustafson, President and CEO:

“SKF has one thing that only a few industrial corporations have: a deep understanding of virtually all industrial functions. In every single place there’s rotation, there’s a good probability that SKF merchandise, capabilities and expert colleagues are offering worth within the type of improved operational efficiency and decreased emissions.

SKF’s skill to grasp the complexity of assembly buyer wants throughout a variety of industries and quite a few geographies, is our biggest energy and a key to our success. Our broad enterprise attain provides us a platform to drive worthwhile progress, because it permits us to constantly goal probably the most engaging alternatives.

Key megatrends and elevated investments in sustainability, digitalization, regionalization and electrification may also present worthwhile progress alternatives for SKF.

All in all, SKF is properly positioned to speed up worthwhile progress by focusing on alternatives the place sturdy market demand matches our skill to distinguish and supply buyer worth.

Profitable execution of our technique will lead to a distinct SKF than at the moment. By 2030, we’ll attempt to:

• Develop sooner and double the enterprise, at improved margins  
• Be extra centered and environment friendly
• Be the technical companion of alternative amongst our prospects
• Lead the event of sustainable options

We now have outlined a strategic framework based mostly on two ideas: clever and clear. Clever means offering linked and tailor-made choices for our prospects, in addition to utilizing expertise to make our operations extra environment friendly. Clear displays our skill to allow a extra sustainable business, while working our personal enterprise in a clear and accountable method.

These ideas will information us as we embark on an thrilling journey to turn out to be a extra centered, revolutionary and worthwhile industrial participant.

We now have bold plans for the long run. With that stated, the Group launched up to date monetary targets solely a yr in the past and we wish to ship on current commitments earlier than altering them.”

The main points of SKF’s strategic framework

Securing clever and clear progress 

We are going to speed up worthwhile progress, with emphasis on:  

• Focusing on industries with excessive progress potential, the place SKF has a powerful market place and aggressive edge, e.g.: high-speed equipment, electrical drives, agriculture, wind, railway, meals & beverage and robotics & automation.
• Re-positioning the Automotive enterprise to worthwhile and rising segments the place SKF has the lead, together with electrical autos, business autos and aftermarket elements. 
• Growing gives for rising industries resembling hydrogen processing and carbon seize, the place SKF is already properly positioned by means of current applied sciences resembling magnetic bearings.
• Strengthening the inspiration for recurring revenues by simplifying our service providing, addressing a wider market. New expertise and partnerships will present scale and quick access to our knowledge evaluation and machine efficiency competence.

Being selective in our investments additionally implies that we are going to cope with the elements of our enterprise that aren’t producing ample returns. Right here, we’ll both enhance the efficiency or trim them from the portfolio.

To ship on our bold progress agenda, we now have recognized 4 most important enablers:

1. Scaling the tempo and impression of innovation and expertise growth

Give attention to growing applied sciences and options that assist our prospects enhance their operations and cut back emissions. We are going to use insights from linked merchandise to hurry up growth of latest buyer choices and options. Over time, we plan to extend R&D expenditure by roughly 50%, serving to us seize extra progress alternatives.

2. Digitalizing the total worth chain

Important progress has been made in digitalizing SKF’s manufacturing operations. As a part of our journey to turn out to be much more related for our prospects, investments shall be made in connecting the worth chain: prospects, gross sales, logistics, manufacturing, provide chain and R&D. This to enhance ease of doing enterprise with us and enabling extra clever selections in our personal operations.

3. Continued funding in automation and regionalization

We are going to proceed to extend our investments in property, plant and gear, supporting our progress ambitions. By these investments, regionalization in Asia will develop from roughly 60% to greater than 85%, and for Americas from roughly 40% to round 60%, additional enhancing our competitiveness and talent to seize worthwhile progress.

The elevated investments shall be funded by actions to enhance our internet working capital and continued value discount. These efforts shall be supported by a brand new working construction and a extra regionalized worth chain.

4. A decentralized organizational construction with clear accountabilities

SKF’s new working mannequin and organizational construction locations end-to-end operational and monetary accountability as near our prospects as doable.

• 4 industrial areas: Americas, EMEA, India & Southeast Asia and China & Northeast Asia, additional enhancing the power of our largest and most worthwhile companies to serve prospects with elevated velocity and responsiveness.  
• One world automotive enterprise: Creating the accountability and transparency wanted to enhance profitability and re-focus the portfolio. The elevated autonomy may also, over time, present enhanced strategic flexibility.
• Six impartial and rising companies: Seals, Lubrication, Aerospace, Marine, Magnetic Bearings, RecondOil, creating the main target wanted for these to proceed to develop profitably and search progress alternatives additionally past the rotating shaft.

As well as, a lean central operate, offering world assist.

The brand new organizational construction is efficient from at the moment, with Group Administration consisting of the next people:

Joakim Landholm (born 1969) is at present Associate at Axholmen Consulting. He has beforehand held senior roles inside Common Electrical, RSA and SAS. He’ll begin his employment with SKF on 15 February.

Manish Bhatnagar (born 1969) is at present Managing Director of SKF’s operations in India.

David Johansson (born 1980) is at present Head of SKF’s International Railway enterprise and China Automotive gross sales.

Erik Nelander (born 1963), at present President, Industrial Gross sales EMEA, will depart Group Administration.

“I wish to thank Erik for his contributions as a member of Group Administration and his continued dedication to growing SKF,” says Rickard Gustafson.

Webcast

Shareholders, analysts and members of the media are invited to hitch a mixed webcast presentation on the Group’s strategic framework and FY 2021 Outcomes at 9:00 CET on 3 February.

Hyperlink to occasion:                https://www.investis-live.com/skf/61e0528c0ba3f01200044369/eadd

Sweden                        +46 10 884 80 16

UK / Worldwide          +44 20 3936 2999

Passcode:                    142403

Aktiebolaget SKF

     (publ)

That is data that AB SKF is obliged to make public pursuant to the EU Market Abuse Regulation. The data was submitted for publication, by means of the company of the contact particular person set out above, at 07:45 CET on 3 February 2022.

For additional data, please contact:

PRESS: Carl Bjernstam, Group Communication

tel: 46 31-337 2517; cellular: 46 722-201 893; e-mail: [email protected]

INVESTOR RELATIONS: Patrik Stenberg, Head of Investor Relations

tel: 46 31-337 2104; cellular: 46 705-472 104; [email protected]

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SOURCE SKF