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SKF Strengthens Focus on Core Aerospace Business by Divesting Non-Core Operations

In a strategic shift aimed at refocusing its business priorities, SKF has announced the divestment of its precision elastomeric device (PED) operation located in Elgin, Illinois. This decision is in line with the company's broader strategy to streamline operations by offloading non-core business units, allowing it to concentrate on its key aerospace domains.

The divestment agreement, signed recently, highlights SKF's commitment to enhancing its operational efficiency and market competitiveness. The Elgin facility, which reported annual sales totaling approximately SEK 260 million in 2024, will be acquired by the Carco PRP Group for a total estimated enterprise value of USD 70 million (around SEK 700 million).

Thomas Fröst, President of Independent and Emerging Business at SKF, stated, "The Hanover and Elgin divestments are examples of our ongoing efforts to execute on our strategy and manage our portfolio to accelerate profitable growth. With this agreement, Elgin will be in a good position to develop its business even further, while we can focus on driving innovation and growth in our remaining core aerospace business."

Earlier, SKF had also completed a similar divestment of its Hanover operation, which was announced on April 14, 2025. This marked the successful exit from both non-core operations identified during its strategic aerospace review. The two divestments represent a crucial step for SKF as it aims to boost its core aerospace segments related to aeroengine and aerostructure bearing offerings, collectively contributing approximately SEK 6 billion in annual sales.

As part of the ongoing transformation within its aerospace division, SKF intends to escalate investments directed toward digitalization and automation enhancements, as well as modernizing its existing manufacturing facilities. These strategic initiatives are expected to better position SKF to meet the evolving needs of its customers and lead the industry innovation front.

The completion of the Elgin operation divestment is anticipated in the fourth quarter of 2025, contingent upon securing the necessary approvals from regulatory authorities. This move is also seen as a significant opportunity for Carco PRP Group, which will now take over the Elgin location and have the potential for further growth and development in the aerospace sector, benefiting from its expanded capabilities.

Overall, SKF's decision to divest non-core operations underlines the growing need for companies to adapt to market demands and to concentrate on areas where they can achieve sustainable growth. By divesting these non-essential divisions, SKF is not only optimizing its business framework but is also setting the stage for improved competitiveness and advanced technological advancements in the aerospace field.

In conclusion, SKF is firmly positioning itself to strengthen its hold on the aerospace market by concentrating on its core competencies, investing in innovation, and responding dynamically to the needs of a rapidly changing industry landscape.