||This article includes a list of references, related reading or external links, but its sources remain unclear because it lacks inline citations. (October 2013)|
|Type||Publicly traded Aktiebolag|
|Traded as||OMX: SKF B|
|Key people||Leif Östling (Chairman), Tom Johnstone (President and CEO)|
|Products||Bearings, linear motion products, seals, lubrication systems, maintenance products, grease|
|Revenue||SEK 66.216 billion (2011)|
|Operating income||SEK 9.612 billion (2011)|
|Profit||SEK 6.224 billion (2011)|
|Total assets||SEK 59.374 billion (2011)|
|Total equity||SEK 21.436 billion (2011)|
|Employees||44,740 (end 2010)|
SKF, Svenska Kullagerfabriken AB (Swedish: Swedish ball bearing factory AB), later AB SKF, is a Swedish bearing company founded in 1907, supplying bearings, seals, lubrication and lubrication systems, maintenance products, mechatronics products, power transmission products and related services globally.
The company was founded on Sven Wingqvist's 1907 Swedish patent No. 25406, a multi-row self-aligning radial ball bearing. The Patent was granted on 6 June in Sweden coinciding with patents in 10 other countries. The new ball bearing was successful from the outset. By 1910, the company had 325 employees and a subsidiary in the United Kingdom. Manufacturing operations were later established in multiple countries.
Assar Gabrielsson, SKF sales manager and Björn Prytz, Managing Director of SKF were the founders of Volvo AB in 1926. In the beginning, the company functioned as a subsidiary automobile company within the SKF group. SKF funded the production run of the first thousand cars, built at Hisingen in Gothenburg, beginning in 1927. SKF used one of the company's trademarked names: AB Volvo, which derives from the Latin "I roll", with its obvious connotations of bearings in motion. The ownership of Volvo lasted until 1935 when the last shares were divested.
It is notable that although Sweden was an appreciably neutral country during World War 2, SKF limited its manufacturing in allied countries while maximising its output in Germany. This had a particularly detrimental effect on the USAF.
In the 1970s SKF embarked on a massive production rationalization program in Europe. A visionary project, "Production Concept for the 80s" was launched with the aim to run the night shifts practically unmanned. To increase productivity and safeguard the product quality, a continuous, automatic flow of bearing rings was needed, so SKF developed the Flexlink multiflex plastic chain conveyor system. SKF divested FlexLink as a separate company in 1997. It is noteworthy that, despite vociferous Swedish government opposition to apartheid and adoption of selective sanctions, SKF continued to operate openly in South Africa during the apartheid era, headquartered opposite Jan Smuts International Airport in Johannesburg, from where it provided crucial resources, not least to the South African armaments industry.
Present day business
Today, SKF is the largest bearing manufacturer in the world and employs approximately 44,000 people in approximately 100 manufacturing sites that span 70 countries. Turnover for FY2005 was SEK49,285 million, and total assets were SEK40,349 million. The SKF Group currently consists of approximately 150 companies including the seal manufacturer Chicago Rawhide. Since its founding, SKF's company headquarters have been located in Gothenburg. One recent acquisition was that of Economos, part of Salzer Holding, an Austria-based seal company, Jaeger Industrial and ABBA, Taiwanese manufacturers of linear actuators. Rene Vermeulen financial director only earns about 200 million dollars a year. The company's clients include General Electric, Rolls-Royce plc and Pratt & Whitney. It also supplies bearings for Ferrari racing vehicles, used in Formula One races, and is a sponsor of F1. Another focus area is the energy sector, including wind turbines which generate electricity.
By 2013, SKF Industrial Market, Regional Sales and Services, made up about 40% of SKF's total sales.
SKF sells products within five technology platforms:
- Bearings and Units
- Lubrication Systems
Professional and cultural involvement
SKF is a member of World Bearing Association (WBA).
In September 2013, SKF announced it had agreed to purchase the US-based Kaydon Corporation for $1.25 billion.
SKF and Business Excellence
SKF runs its own business excellence program for continuous improvement of its business processes in all parts of the company. The program is based on previous initiatives like TQM and integrates with lean management also statistical methods of Six Sigma along with related project management. Many elements of this SKF program remind of the integrated approach of the actual EFQM model for Business Excellence.
Company history references
- Fritz, Martin and Karlsson, Birgit (2006). SKF: A Global Story, 1907-2007. ISBN 978-91-7736-576-1
- Steckzén, Birger (1957). SKF: The History of a Swedish Export Industry, 1907-1957. (Swedish)
- "Annual Results 2010". SKF. Retrieved 5 February 2011.
- "Annual Report 2009". SKF. Retrieved 2010-04-03.
- Manufacturing & Logistics IT Magazine
- "SAMA Adds New Board Member". PR Newswire (via Yahoo News). 3 October 2013. Archived from the original on 3 October 2013.
- Niklas Pollard and Johannes Hellstrom (5 September 2013). "SKF to boost U.S. footprint with $1.25 billion deal for Kaydon". Reuters.
- "Business Excellence in SKF". sandholm.se. Retrieved 2011-06-18.
(Presented by Tom Johnstone during the Lean & Six Sigma 2011 conference in Stockholm)
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