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SKF's Strategic Redesign of Industrial Organization

In a move aimed at boosting competitiveness and driving profitable growth, SKF has announced significant structural changes within its Industrial business. The initiative, revealed on September 24, 2025, will reshape various operational segments to foster synergies across the global value chain and streamline execution processes at the regional level.

SKFs new structure merges the Operations and Commercial Excellence functions into a single entity. This strategic integration is designed to enhance alignment and governance, allowing for a more efficient end-to-end execution across SKF’s operations. The decision falls in line with a broader effort to optimize the company’s organizational setup amid the ongoing separation of its Automotive business.

Rickard Gustafson, President and CEO of SKF, emphasized the importance of this redesign, stating, “As the separation of the Automotive business is progressing, we have the opportunity to adapt our setup for the Industrial business. This is a natural next step in our strategic journey and with clearer and more efficient structures, we will strengthen both our strategic and commercial capabilities.”

The company also intends to dissolve its Independent and Emerging Businesses area, reallocating its standalone entities into a newly formed category called Specialized Industrial Solutions. This shift is aimed at reinforcing the core strategic businesses tailored to meet specific market demands effectively.

Leadership Changes

The implementation of the new organizational structure comes with leadership changes within SKF’s Group Management. Notably:

• - Hans Landin, previously Senior Vice President for Group Commercial Excellence Bearings, has been appointed as the leader of the new structure for standalone businesses, taking on the role of President of Specialized Industrial Solutions.
• - Joakim Landholm, who served as Senior Vice President for Group Operations and Chief Sustainability Officer, will now oversee Commercial and Operations Development.
• - Susanne Larsson, the Senior Vice President and CFO, will expand her responsibilities to include the Chief Sustainability Officer role.
• - Thomas Fröst, who previously led the Independent and Emerging Businesses, will step down from Group Management but will assist in an advisory capacity during the transition.

Gustafson remarked on the intensified industrial focus, asserting that this organizational evolution aims to boost progress for both SKF and its customers. He also expressed gratitude towards Fröst for his contributions over the years in developing the core businesses, wishing him well for his future endeavors.

Impacts and Expectations

The immediate implementation of these changes is anticipated to streamline processes and enhance operational efficiencies, positioning SKF for heightened competitiveness in the industrial sector. With clearer structural foundations, the company aims to leverage its existing strengths while paving the way for new strategic opportunities.

With the evolving landscape of the industrial sector and changing market expectations, SKF's approach reflects a proactive engagement with the challenges ahead. This transformative initiative signifies SKF's commitment to maintaining its leadership in the market while adapting to the dynamic demands of its clients and stakeholders.

As the company moves forward, it will be important to monitor how these changes impact SKF’s performance and its capabilities in driving innovation, sustainability, and customer satisfaction in the months and years to come.