Rolling bearing giant SKF

Decline in orders: plant at a standstill for two days

Despite the crisis, SKF Österreich AG, managed by Robert Zeillinger (left), aims to keep as many employees as possible in the company.

(Bild: Krone KREATIV/stock.adobe.com SKF Österreich AG)

The recession in Europe on the one hand, and the trend in Asia to buy parts regionally on the other - these are the two major issues that are also putting rolling bearing giant SKF under pressure. As a result, orders at the plant in Steyr (Upper Austria) are in sharp decline and the plant will be shut down for two additional days this month.

Anyone who clicks on "current job vacancies" on the SKF Austria website will be redirected to a digital map on which it is immediately apparent that there are currently no vacancies at the Steyr site. No wonder: the rolling bearing manufacturer is also feeling the effects of the current uncertainty that is spreading across more and more industries. The result: demand has fallen.

Solutions for particularly demanding applications
"Compared to the record year 2022, we have recorded a 20 percent drop in orders," confirms SKF Austria CEO Robert Zeillinger. The site in Steyr is part of the network of the world's largest rolling bearing manufacturer SKF, which has its headquarters in Gothenburg, Sweden. Solutions for particularly demanding applications are manufactured in Upper Austria, such as for wind turbines, high-speed trains, air conditioning compressors and high-performance pumps. Special materials such as ceramics and high-performance stainless steel are also used to produce the bearings.

The measures require the willingness of all our workers and employees to compromise, also in order to be able to keep as many employees as possible in the company despite the crisis.

Robert Zeillinger, Vorstand SKF Österreich AG

The plant in Steyr is generally regarded as a "robust" operation. However, as many customers are already experiencing a decline in sales for the third year in a row, this is also having an impact on orders at SKF. The company has to react to this. What measures have been taken? On the one hand, time accounts and remaining vacation are being reduced, voluntary bonus payments and premiums are being reduced and a voluntary performance bonus is being suspended.

Plant shut down for two days in February
In addition, the plant was shut down for two days in February - a measure that will be repeated this month. There will also be two additional production-free days in March.

"The order of the day is to take preventative measures now in order to keep our plant competitive and fit for the future after the recession," says Zeillinger, who is aware that "not everyone will like the cost-cutting measures." 1100 employees work at the Steyr site. The order situation has remained at a low level for several months. There is currently no improvement in sight, they say.