SKF in East Europe Presented by Marek Pracki Area Director, CEE-MEA SKF Capital Markets Day 2008
Poland
Czech.Slovakia
Hungary
Belarus
Ukraine
Romania
Croatia
Slovenia
B-H Serbia &Montenegro
Mac.Alb.
Bulgaria
Russia
Kazakhstan
KrasnojarskEkaterinburg
SKF offices (16)SKF branch offices (11)SKF manufacturing (3)SKF industrial service centreMaintenance support centre
LithuaniaLatvia & Estonia
SKF presence in Eastern Europe
History of SKF in Eastern Europe
c
1914 – Establishment of SKF office in Russia.
1919 – Kuličková loziska SKF s.r.o. in Prague (Czechoslovakia inthat time).
1922 – Szwedzkie Łożyska Kulkowe Sp. z o.o. in Warsaw (Poland).
1922 – Head office for Eastern Europe and the Balkans was opened in Prague.
1923 – SKF Zagreb opened in Croatia.
1925 – SKF presence established in Bulgaria.
1928 – SKF Svéd Golyóscsapágy Rt. in Budapest (Hungary).
1920 – First Agent of SKF in Baltic’s ‘Willem Endel’ active from the 1920s, located in Riga.
1930 – 6 branches in Poland and 7 branches in Czechoslovakia.
ˇ
History of SKF in Eastern Europe - Russia
1914 – SKF office in Russia.
1916 – SKF established factory in Moscow, first ball bearing plant in Russia (under SKF management till 1928).
1991 – Re-open SKF office in Russia.
2004 – start-up of sales company SKF ZAO.
2004 – SKF opened Industrial Services Center in Moscow.
2007 – SKF decision to build factory in Russia to produce railway CTBU. SKF factory in Moscow, 1920s
Eastern Europe revenue development
0
500
1 000
1 500
2 000
2 500
3 000
2000 2001 2002 2003 2004 2005 2006 2007
SEKm
SKF Eastern Europe strategies in the 1990s
Presence / sales offices• Proximity to customers• D/D network
Establish infrastructure• Logistics, IT• Service excellence• Quality systems• Grow HR capacity and potential
Strong technical support• Specialists, local language literature, fairs• Support acquisitions
… to be the LEADER amongst western bearing suppliers
Poland
Czech.
SlovakiaHungary
Belarus
Ukraine
Romania
CroatiaSlovenia
B-H Serbia &Montenegro
Mac.
Alb.
Bulgaria
Russia
Kazakhstan
Lithuania
Latvia
11/(43)10/(294)1 LuSy
22(43)/27(27)
12/(40)4/(47)
14/(70)7/(139)
6/(27)4/(8)
5/(11)8/(60)
5/(13)4/(15)
4/(10)/4(4)
8/(23)/4(4)
4(4)/3(3)5(5)/4(4)
1 LuSy 4(8)/4(27)
12(12)/9(9)
16/(55)4/(27)
12/(23)3/(10)
3(5)/4(4)
8/(23)10/(18)
No. of industrial distributors(outlets): 153 (421)No. of VSM distributoroutlets: 116 (703)No. of lubrication systemdistributors: 2
Distributor network in Eastern Europe
Capture value
...through SKF Documented Solutions Program
A tool that allows our customers to quantify the true value received by using SKF solution products or services; this value is calculated using customer plant information, in conjunction with the industry's best practices andapplied industries benchmarks as well as general plant application Key Performance Indicators (KPI)…
SKF Distributor College in Eastern Europe
2,301 distributor employees from Eastern Europe out of 3,786 in all of Europe completed various courses run in SKF Distributor College during 2007.
The 10,000th person who completed one of the courses, was an employee at MD Prema, SKF distributor in Poland.
Mr. Waldemar Orowiecki recieves his certificate
1997 - Lutsk, Ukraine
Acquisition of factories in Eastern Europe
2002 –Sopot, Bulgaria
1995 – Poznan, Poland
SKF Industrial Service Center in Moscow
Reconditioning of rolling bearings for continuous casting machines – steel Industry
Large size bearings for steel, pulp & paper, mining and other industries
Reconditioning and services for machine tool spindles – aerospace, electronics, woodworking industries
SKF Logistics - competitive advantage for EE
• Scheduled door-door deliveries
• In time reliability > 97%
• Well known subcontractors with good reputation
• Global tracking system
• High frequency
e–business in Eastern Europe
817 451 882 685 329 240
Electronic
Traditional
90% of orderlines are e-business.
Pulp & paper customer in Lithuania
Customer needs:Avoidance of unplanned stops due to intermediate gearbox bearings failures (240T€/year). To run their Beloit paper machine (1973) at 600 m/min.
SKF solution:- New bearing arrangement for 20 out of 93 cylinders- Inner (Cylinder) side: NU2310 ECML/C3, new casted housing- Outer side: 22311 EK/C3, new casted housing + shafts- Sealing of the housings - HyPro Filtration unit (15 T€) - Vibration analysis - SKF Microlog Analyser GX sold in 2005 - Bearing sales through distribution
Customer benefits: - Longer service life of the bearings – no unpredictable stops – no
production losses - Easier and quicker exchange of the bearings- Reduced leakages from the housings due to sealing solution
Future challenges
Industry moving from west to eastForeign Direct Investments in CIS and CEEDistributor network development & diversificationOil & gas development in Russia
Political and security volatility in Russia & Balkan Currency risk managementRussian dependence on oil and natural resources pricesFinding and keeping good employees
SKF strategy implemented in Eastern Europe
Creation of VALUE ADDED for our partners based on longterm, mutualy profitable cooperation with:
• Strategic origin equipment manufacturers
• Net of authorised distributors
• End-users of SKF products and services underthree parties agreements: SKF – Distributor – End-user
Opportunities to develop
• Continue to grow CIS* business (and SEE*)
• Support manufacturing initiatives
• Strengthen distributor network
• Expand on Group Engineering Platform opportunities
• Grow with global key accounts
CIS: Russia, Ukraine, Belarus, KazakhstanSEE: South East Europe
Key business message
• EE fast growing market for SKF
• Strong customer base both OEM and distributors
• Same strategy as for Western Europe
• Increasing production capacity (best cost countries)
CIS: Russia, Ukraine, Belarus, KazakhstanSEE: South East Europe