LANSDALE, Pa. – SKF USA Inc. has announced plans to transfer production from its factory in Hobart, Oklahoma, to other SKF sealing facilities in North America. This move will result in the eventual closure of the Hobart plant within the next two years.
The SKF Sealing Solutions Hobart plant manufactures wheel-end seals for heavy-duty trucks and automotive seals for a variety of automotive original equipment (OE) customers, as well as replacement products sold through distribution. Manufacturing of the products will be transferred to existing sealing facilities in Seneca, Kan., and Guadalajara, Mexico, in addition to another new facility planned near the Guadalajara area.
“This consolidation is being initiated in consideration of the continued competitive North American market, the movement of some of the plant’s key OE customers to Mexico and a very limited labor pool in the central Oklahoma area,” said Gregg Rasmussen, president of SKF Sealing Solutions. “Relocating the manufacturing will help to ensure short delivery times, high flexibility and the superior customer service demanded in the seal market.”
“It’s a difficult decision to close a plant that we established more than 35 years ago and that has been a valuable part of our supply network,” said Tom Quatsoe, head of manufacturing for SKF Sealing Solutions, North America. “However, the importance of proximity to other SKF facilities, our key customers and suppliers has become a time-critical factor. Labor stability also is key, because the small and declining population in the surrounding Oklahoma counties cannot sustain the large, steady, three-shift workforce that is needed for today’s flexible, lean manufacturing.”
The consolidation process is expected to take place during a period of 24 months and will affect 225 employees.
SKF North America has more than 50 production facilities, six SKF Solution Factories and some 8,000 employees in the United States, Canada and Mexico.
