STOCKHOLM, Sweden — SKF has announced plans to transfer the manufacturing of automotive seals products from its facility in Elgin, Ill., to other SKF seals factories in Mexico and the U.S. 
The company said consolidation is necessary to remain competitive in the U.S. automotive market.
The total cost of these activities amounts to around $7.4 million, of which $4.3 million will be taken as restructuring expenses in the fourth quarter this year and approximately $3 million during 2009. The annual benefit of the program, fully implemented from 2010, amounts to around $3.7 million.
The consolidation process is expected to take place over a period of 12 months and will affect about 160 of the 430 employees at the Elgin site.
