NEW DELHI: Global auto component major SKF has delayed commissioning of its Rs 150-crore plant at Haridwar. The 10-acre plant was scheduled to start operations by the end of this year, but will now kick off in the first quarter of 2010.
SKF India, the largest supplier of automotive bearings, has taken the decision after a slump in demand from major auto companies. SKF India managing director Rakesh Makhija said, ?We have decided to postpone work at the Haridwar plant due to a slowdown in market demand. However, there is not much impact on the demand for industrial products and our Rs 300-crore investment in the other plant at Ahmedabad, which will make equipment for the industrial sector, is on track. The plant will be operational next year.?
The company has three facilities, two in Bangalore and one in Pune. Despite the demand skid, SKF is not looking at retrenching workforce, though its Swedish parent company AB SKF has already shut one of its North American plants and laid off some of the staff.
AB SKF president and CEO Tom Johnstone said, ?We have parted ways with 100 temporary workers in the US and more can happen if there is no improvement in the economic situation in the near future. India is a different market, as we are investing in two new facilities at Ahmedabad and Haridwar, so we will increase our workforce to 3,300 from the current 2,600 in the next two years.?
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