Swedish automotive component manufacturer SKF announced it will close its factory in Monterrey and relocate its production capacity to its facilities in Puebla and La Silla, Nuevo León. This move is part of a consolidation of its manufacturing footprint in America and a response to lower-than-expected demand for electric vehicles. The company specified that under the new independent corporate structure, the size of the complex exceeds the current needs of both business lines. Financially, SKF projects a consolidation charge of approximately 500 million Swedish crowns (SEK 0.5), which will be recorded in its second-quarter financial statements. This figure is already integrated into the guidance for the fiscal year 2026 as an item affecting comparability. The closure of the Monterrey site will result in the elimination of approximately 390 jobs, while expansions in Puebla and La Silla, Nuevo León, will generate around 100 new vacancies. The company stated that this move responds to the ongoing separation of its automotive business and aims to optimize the group's competitiveness in an electric vehicle (EV) market that has grown below initial projections. The Monterrey plant originally operated under a shared model between the industrial and automotive divisions to meet anticipated regional demand for vehicle electrification.
SKF to Close Monterrey Factory to Optimize Production
Swedish company SKF is closing its factory in Monterrey, Mexico, and shifting production to Puebla and La Silla. The decision is due to lower-than-expected EV demand and business restructuring. It will lead to 390 job cuts but create 100 new positions elsewhere.
