GOTHENBURG, Sweden (Aug. 4)—Swedish engineering group SKF A.B. plans to close an automotive seals plant in Springfield, S.D., in the coming 18 months and transfer production to plants in Elgin, Ill., and Guadalajara, Mexico.
The firm said it needs to reduce costs in order to remain competitive. It cited pressures on profitability from a weaker North American marketplace and automotive industry restructuring for its decision to close the Springfield facility and a bearing plant in Aiken, S.C.
The Springfield factory has been in operation since 1974. It employs about 210 in a community of only about 800 residents.
The moves will affect 460 employees, SKF said, and result in $36.8 million in restructuring costs, about two-thirds of which will be charged to second quarter earnings.