SKF has signed a Memorandum of Understanding (MoU) for a strategic partnership with Sinovel Wind Co. Ltd., one of the largest wind turbine manufacturers in China. The MoU will enable the creation of a platform for a preferred supplier/customer relationship between SKF and Sinovel. The cooperation will cover supply chain service system optimization, staff training and development, and engineering development and design, as well as resources management.

In connection to this, SKF has signed a series of contracts with Sinovel valued at more than 33 million euros for main shaft bearings and sealing systems for 3 MW wind turbines to be supplied in 2010.

The cooperation with Sinovel was announced in September 2009 when SKF inaugurated its second phase of investment in the Dalian factory, situated in the Liaoning Province. The 58 million euro investment was initiated in May 2008 and is the second of a three-phase project started in 2005. A 25,000-square-metre facility has been added adjacent to the existing factory, doubling the manufacturing capacity.

The aim of the investment is to increase the manufacturing capacity for large and medium-size bearings in order to support continuous business growth in China and other parts of Asia, especially in the areas of renewable energy, metalworking, mining, construction and industrial transmission industries.