SKF to close Monterrey plant in Americas restructuring

SKF is closing its factory in Monterrey, Mexico, and redistributing production across two existing sites as part of the separation of its automotive and industrial businesses. Manufacturing capacity will move to SKF’s automotive operation in Puebla and its industrial operation in La Silla, also in the Monterrey area, at a restructuring cost of SEK500m (US$54.1m) to be charged in the second quarter of 2026.

The Monterrey facility was established as a shared site for both business units and to support anticipated growth in electric vehicle (EV) demand in the Americas. SKF said lower-than-expected EV uptake, combined with the decision to separate its businesses, meant the site exceeded the operational requirements of each individual unit.

The consolidation will result in approximately 390 redundancies at Monterrey, while around 100 new roles are expected to be created across the Puebla and La Silla facilities. SKF said the restructured manufacturing setup would retain the capacity to meet future electrification demand.

The Monterrey closure cost forms part of SKF’s full-year 2026 guidance for items affecting comparability.

Source: SKF