SKF has decided to build a factory in Russia for tapered roller bearing units to supply the fast-growing Russian railway market. This new investment will further strengthen SKF’s pos-ition as a world leader in the railway industry.

The construction of the new factory is scheduled to begin in September 2008 and be operational by April 2010. The factory will also have a production channel dedicated to reconditioning railway bearings.

The Group’s investment in the project amounts to around 25 million euros. The plant will have about 150 employees.

The final site for the new factory is not yet decided, but it is expected to be in the vicinity of Moscow.

The Russian railway, RZD, is rebuilding its rail transport system, including both infrastructure and rolling stock, and is now the world‘s largest investor in rail transport, with a 25 percent network expansion.

Russia is now in a technology transition phase, introducing tapered roller bearing units to replace cylindrical roller bearings in axleboxes. This shift to pre-lubricated tapered roller bearing units is driven by the desire to achieve longer maintenance intervals and lower life-cycle costs. SKF has a leading pos-ition in supplying tapered roller bearing units to the railway industry all over the world and intends to play an important role in the Russian market.