SKF, Sweden, FAG Kugelfischer Georg Schafer AG, Germany, and the US company NN Ball & Roller will start a jointly owned stand-alone company in Europe – NN Euroball Aps – for the manufacture and sale of chrome steel balls used for ball bearings and other products.
NN Ball & Roller Inc. will have 54 percent of the shares in the new company, SKF and FAG will have 23 percent each. NN Euroball Aps plans to start to operate during the summer 2000.
The new company will acquire the parties ball factories located in Pinerolo, Italy (SKF), Eltmann, Germany (FAG) and Kilkenny, Ireland (NN Ball & Roller Inc). The number of employees will be some 700 and yearly sales will be about MEUR 100 million euro.
SKF’s decision to sell its chrome steel ball manufacturing in Europe is in line with the Group’s announced strategy to reduce its vertical integration and thereby also reducing its total assets. The sale of the Pinerolo plant will reduce the Group’s net assets with some MSEK 250. NN Euroball Aps will have a six year supply agreement with the SKF Group.