SKF Accelerates Spin-off of Automotive Bearing Business: Str

Publication Time：2025-12-16 11:14 [ From：Andge Bearing ] Author：Bearing Website

In a move that reshapes the global bearing industry landscape, SKF, the world's largest bearing manufacturer based in Sweden, announced in November 2025 an accelerated spin-off of its automotive bearing business, aiming to focus on the high-margin industrial bearing sector. The decision came as the 12-month rolling profit margin of the automotive bearing business dropped to 4.3%, in stark contrast to the 15.9% profit margin of the industrial bearing business. At a capital market day press conference held at the company's headquarters on November 11, SKF CEO Richard Gustafson and Automotive Bearing CEO Kerstin Enochsson outlined the future strategies for the two business segments, marking a significant strategic shift for the century-old enterprise.

According to the original plan proposed in September 2024, the automotive bearing business was scheduled to become independent in the fourth quarter of 2025 and list on NASDAQ in the first half of 2026. However, the deep integration of automotive and industrial bearing businesses in production, R&D, and sales slowed down the spin-off process. The latest progress update shows that 50% of automotive sales have been transferred to the new legal entity, 70% of automotive bearing employees have moved to the new company, and 70% of production channels have been transferred. Gustafson emphasized that the accelerated spin-off is "a necessary measure to optimize resource allocation and enhance core competitiveness," adding that after the spin-off, SKF Group, which will focus solely on industrial bearings, is expected to achieve an annual sales growth rate of 4%, a mid-term adjusted EBIT margin of 17%, and a long-term target of 19%. The return on capital investment is also projected to rise from 14% before the spin-off to 20%.

Despite the profit pressure, SKF's automotive bearing business boasts a century of experience covering key areas such as automotive engines, transmissions, wheel hubs, chassis suspensions, steering systems, and electric drive systems. In the era of electrification, which demands higher bearing performance (higher rotational speed and greater instantaneous impact), SKF has secured a 33% market share in the electric vehicle bearing market through strategic cooperation with major Chinese automakers such as BYD. A notable example is the high-speed ceramic bearing jointly developed by SKF for BYD's U9 supercar, which supports a motor speed of 30,000 rpm, delivering 3,000 horsepower and enabling a top speed of 492.22 km/h, setting a new record for the fastest production car.

From the perspective of sales structure, SKF's automotive bearing business in 2024 was composed of 50% passenger vehicles, 15% commercial vehicles, and 35% after-sales services. The commercial vehicle segment, which has strict requirements for bearing load and durability, remains a stronghold of SKF. However, the growing competitiveness of Chinese bearing manufacturers has posed significant challenges. According to foreign media reports, the top 10 global bearing manufacturers include Sweden's SKF, Germany's Schaeffler, Japan's NSK and NTN, the United States' Timken, and China's C&U Group, Harbin Bearing, and Luoyang Bearing. Chinese enterprises have gradually seized the automotive-grade bearing market with lower prices and faster response speeds, and their overseas expansion through overseas factories has further disrupted the global market balance.

The industrial bearing sector, which SKF will focus on, shows strong growth potential in military, aerospace, and rail transit fields. Against the backdrop of complex geopolitical factors, NATO countries have increased their military spending to 2-3% of GDP. SKF predicts that the global demand for military bearings will grow at an annual rate of 7-8% by 2030. Its military bearings are widely used in armed helicopters, fighter jets, drones, tanks, infantry fighting vehicles, warships, and aircraft carriers. In 2024, SKF's military bearing sales reached 2 billion Swedish kronor, with a compound annual growth rate of 14% over the past three years.

Rail transit is another core industrial segment, with SKF's 2024 sales reaching 5 billion Swedish kronor and a compound annual growth rate of 9% from 2022 to 2024. It is expected to maintain a 4% annual growth rate until 2030. SKF sells 3 million rail transit bearings annually, including over 300,000 refurbished and remanufactured units, covering traction motor bearings, gearbox bearings, and wheel set bearings, maintaining a leading position in the high-speed rail and urban rail transit markets. The aerospace sector, known as the "cash cow" of SKF, has achieved a 14% compound annual growth rate from 2022 to 2025, with adjusted operating profit margins increasing by 8 percentage points. A single commercial aircraft uses up to 2,000 bearings, involving fan engine main bearings, landing gear bearings, and auxiliary power unit bearings. SKF's aerospace bearing business has 1 R&D center, 10 factories, and 2,700 employees worldwide, providing maintenance services to shorten equipment downtime.

To strengthen its industrial bearing business, SKF plans to enhance localization. Currently, the localization rate of parts and manufacturing in Europe reaches 95%. In China and East Asia, the localization rate was 63% in 2025 and is targeted to rise to 70% by 2030. Similar targets apply to the Americas, while India and Southeast Asia will see a significant increase from 46% to 70%. Industry analysts believe that SKF's spin-off decision reflects the structural changes in the global bearing market, and the competition between Chinese enterprises and international giants will focus more on high-end industrial segments in the future.

【Andge Bearing】WuXi Andge Bearing Co.,Ltd. delivers reliable bearing solutions for industrial, automotive and mechanical applications.

TikTok

SKF Accelerates Spin-off of Automotive Bearing Business: Str

Featured Services

Exclusive Offers

Purchase Guide

Buyer Services

Service