The Hindu Business Line : Market slump takes toll of SKF project

NEW DELHI: With the automotive market slowing down in India, global auto component major AB SKF today said it has delayed the commissioning of its Rs 150 crore manufacturing facility at Haridwar.

The company had earlier planned the 10 acres plant to go on stream towards the end of this year. “We have decided to postpone work at the Haridwar Plant due to a slowdown in market demand. We expect to commission the plant in the first quarter of 2010 a lthough we are yet to take a final decision,'' AB SKF President and CEO Tom Johnstone told PTI here.

AB SKF, which operates in the country through its subsidiary SKF India, currently has three manufacturing facilities, two in Bangalore and one in Pune, and another being constructed in Ahmedabad.

“We feel that the current market demand can be met with our facilities in Bangalore and Pune,'' he said, adding its new facility at Ahmedabad, being set up at an investment of Rs 300 crore, was expected to be commissioned next year.

Mr Johnstone said the current global slowdown has had an impact on the company and had shut one of its North American plant and the Indian operations could not escape the impact.

“In the third quarter of this year, we had parted ways with 100 temporary workers,'' he said, however, adding the company did not see any major changes on employment pattern.

“In fact, when our two facilities in Ahmedabad and Haridwar go on stream, our employment level will increase to 3,300 from the current 2,600,'' he said. Johnstone said the slowdown in the automotive market has resulted in many of its major clients in In dia cutting down orders 'to the tune of over 10 per cent'. The Indian auto industry had recorded a 14.42 per cent decline in total vehicle sales in October at 8,65,404 units as against 10,11,221 units last year. – PTI

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