Gothenburg / Schweinfurt – The Swedish technology provider SKF is building a new manufacturing plant in Cajamar in Brazil. The rapidly growing market for wind turbines prompted the group to make this investment.
SKF is investing 24 million euros in the factory, which will create 150 jobs on 6,600 square meters. In the new factory, SKF Kaydon will produce slewing rings for Brazilian wind turbines. The rotor blades are rotated into the appropriate position against the wind via these connections.
Example of the global expansion of the BeyondZero portfolio
The new factory will begin operations in the second half of 2015. SKF Group Chairman and CEO Tom Johnstone emphasized: “Kaydon’s market leadership in renewable energy in North America, SKF’s global presence and the new factory in Brazil create optimal conditions for a strong product and service offering.” Kaydon Corporation has been part of SKF since mid-October 2013. The new plant is a great example of the purposeful global expansion of SKF’s so-called “BeyondZero portfolio”. With the solutions from this portfolio, customers can improve their environmental footprint, says Johnstone.
Plant aims to support wind energy expansion in Brazil
Brazil is forced to adapt its energy supply due to strong economic growth. The system currently relies on around 70 percent of large hydroelectric power plants and, according to the Brazilian government’s wishes, should increasingly be converted to wind turbines and other renewable energy sources. In the first half of 2014, new power plant capacities with a total volume of 4,200 MW came online. The output of the new wind turbines alone was almost 1,700 MW. Due to the constantly blowing wind in Brazil, the wind power generators achieve a very good yield. For this reason, more and more wind turbines are being installed in Brazil. SKF estimates that these generators have a total capacity of around 2,000 to 3,000 MW per year.
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To the SKF company profile
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Breaking News Analysis: SKF Expands into Brazil with New Manufacturing Plant
As I delve into the recent news, I’m excited to share my analysis of the Swedish technology provider, SKF’s, bold move into Brazil with a brand-new manufacturing plant. This strategic decision not only strengthens SKF’s global presence but also sets a precedent for the growing importance of renewable energy.
Brazil: A Growing Market for Wind Turbines
SKF’s decision to invest in Brazil, particularly in Cajamar, is a wise move considering the country’s rapidly expanding market for wind turbines [[1]]. According to SKF’s official website, the company has been present in Brazil for over 90 years, with a rich history of manufacturing and innovation [[2]]. This new investment underscores SKF’s commitment to supporting Brazil’s renewable energy initiatives.
Key Facts and Figures
Investment: 24 million euros
Job creation: 150 jobs
Factory size: 6,600 square meters
Production: Slewing rings for Brazilian wind turbines
The Importance of Slewing Rings in Wind Turbines
The slewing rings produced at the new factory will play a crucial role in the operation of wind turbines. These essential components enable the rotor blades to rotate into the correct position against the wind, ensuring optimal energy generation. By manufacturing these critical parts in Brazil, SKF is not only catering to local demand but also bolstering its position in the global renewable energy sector.
Cautionary Notes: Retail Price Fixing Concerns
However, as I analyze this news, I must also acknowledge the importance of fair business practices. In November 2022, CADE (the Brazilian Competition Authority) condemned SKF for retail price fixing, highlighting the need for the company to prove economic efficiency gains [[1]]. SKF must remain mindful of these concerns, ensuring that its business practices are transparent and fair.
Conclusion
SKF’s new manufacturing plant in Brazil demonstrates the company’s commitment to innovation, growth, and sustainability. While the focus on wind turbines is a promising development, SKF must also address concerns surrounding retail price fixing. As the demand for renewable energy continues to rise, I will closely monitor SKF’s journey in Brazil and provide updates on this rapidly evolving story.
References:
[[1]]https://www.gov.br/cade/en/matters/news/cade-condemns-skf-for-retail-price-fixing
[[2]]https://evolution.skf.com/90-years-in-brazil/
* [[3]]https://www.exportgenius.in/brazil-importers-of-skf
