SKF selects Charleston for new operation; expands the region’s aerospace cluster

January 26, 2006 – SKF, a global supplier of products, solutions, and services in the rolling bearings and seals business, has selected the Charleston region as the site for the Specialty Bearings Manufacturing Operations of MRC Bearings. About 100 new jobs will be created, with an investment of approximately $12.5 million. Today’s announcement was facilitated by the Charleston Regional Development Alliance.

MRC Bearings’ newly constructed 32,000-square-foot building is located next to the existing SKF Aero Bearing Service Center (ABSC) in North Charleston’s Pepperdam Industrial Park. The new facility will house the precision ball bearing manufacturing operations that the company is moving from its plant in Jamestown, New York.

“Charleston offers many benefits to the company,” stated Kaj Thoren, President of SKF Aero and Steel Division. “We found a synergy between the existing overhaul and repair business and the Specialty Business that made sense to expand the operations in North Charleston. Also very attractive is the Charleston Regional Development Alliance’s strategy in developing an aerospace cluster that will attract and provide a supply chain network to support the various aerospace businesses in the area.”

SKF Aeroengine Operations Director, Rolf Jacobson, added, “Charleston provides a good environment for developing our business. The success with our overhaul and repair service operations business provides concrete evidence of the depth of the area’s labor pool and the success of the South Carolina training package. The cooperation and support of our employees in the development and transition of the ABSC business made the decision an easy one.”

Jack Bellomo, Director of Operations for the Specialty and Aero Bearing Service Center commented, “The cooperation and support received from the Charleston Regional Development Alliance during this process has been very reassuring. We’ve also been impressed with the people – the employees we have hired to date.”

The building is fully air conditioned and humidity controlled to maintain constant temperature and humidity levels required for the company’s high-tech processes. The operations also meet the stringent certification requirements for ISO-14001 and OHSAS-1800.

“I am pleased with the building and believe it is a structure that will provide SKF a facility where they will be able to support their customers for many years,” added Project Manager Jerald Thelander. “The building was completed on schedule, which was made possible by the cooperation and teamwork exhibited by the main contractors, C. R. Hipp Construction, Inc., Gatch Electrical Contractors Inc., and Pepperdam Construction Co., Inc.”

“This company’s decision to relocate in our region reinforces our growing cluster of aerospace-related companies,” said Alliance Chairman Bill McCall, Jr. “We’re very pleased that SKF has chosen to continue their success in the Charleston region, and we welcome the high quality jobs they will bring to area residents.”

“We are elated at SKF’s great news,” said Charleston County Councilman Leon Stavrinakis. “Expansions of companies with existing Charleston operations such as this are the ‘gold standard’ – the corporate vote of confidence that lets us know our business climate is considered fertile ground for their company’s growth. As SKF continues to grow its world-class North Charleston operation, it brings even more high paying, innovative engineering opportunities to our citizens, and grows our burgeoning aviation / aerospace industry cluster.”

Keith Summey, Mayor of North Charleston, added that the region is home to a growing community of technology companies. “SKF could have chosen to relocate their operations anywhere in the country. We’re pleased and proud that they selected our city as a place to invest for the future,” he said.

In facilitating announcements such as today’s, the Alliance works with numerous public and private allies. Its relationship with the South Carolina Department of Commerce has been of particular importance through the years.

“The MRC Bearings operation will be an important part of our state’s aviation cluster, which we’re focused on growing in order to create jobs and raise income levels in South Carolina,” said Gov. Mark Sanford. “We’re going to continue our work of improving the underlying business climate for companies in our state, so that existing firms like SKF can continue to grow.”

“This is another big win for our state’s aviation sector,” said Secretary of Commerce Bob Faith. “SKF’s relocation of its MRC Specialty Bearings Manufacturing Operations not only adds more higher paying, knowledge-based jobs that will enhance the quality of lives for residents in the Lowcountry, but it also builds on the introduction of new technologies that will enable them to be competitive and meet the demands of the ever-changing global marketplace.”

About MRC Bearings
MRC Bearings, a unit of SKF USA Inc., is a leading manufacturer of ball and roller bearings for Aerospace and Specialty markets. The company, which was founded in 1903, employs 700 people at its facilities in Jamestown and Falconer, NY, Winsted, CT, and North Charleston, South Carolina.

About AB SKF
AB SKF, the parent company of SKF USA Inc., is headquartered in Göteborg, Sweden, and is the world’s largest supplier of rolling bearings and seals. The company also manufactures and markets linear motion products, high precision bearings, spindles and spindle services for the machine tool industry, and lubrication systems, and is an established producer of bearing steel. SKF has 100 production sites worldwide and employs almost 40,000. Company operations have been newly organized globally under Automotive, Industrial, and Service divisions.

About the Charleston Regional Development Alliance
The Charleston Regional Development Alliance represents Berkeley, Charleston and Dorchester counties. Its mission is to create improved opportunities for all people in the Charleston region by competing successfully in the global economy. Since its inception, the Alliance has worked with thousands of companies to help promote business investment and quality growth in the area. To learn more, go to www.charleston-for-business.com.

Alliance Media Contact:
Natalie J. Lawrence
843-760-4523
[email protected]

SKF Contact:
Cheryl Johnson
716-661-2600
[email protected]