SKF relocates automotive operations from Monterrey to Puebla and La Silla

SKF announced a reconfiguration of its operations in Mexico as part of the separation of its automotive business, aiming to strengthen efficiency and competitiveness across the region. The company will shift production from Monterrey to facilities in Puebla and La Silla, consolidating capabilities in strategic locations.

Production reorganization to enhance efficiency

The Monterrey plant operated as a shared facility between SKF’s Industrial and Automotive divisions, originally designed to support projected growth in electric vehicles across the Americas. However, slower-than-expected momentum in this segment, combined with the business separation, prompted a reassessment of installed capacity.

Under the new configuration, SKF will optimize its manufacturing footprint, concentrate operations, and improve overall operational performance. The company will also retain the flexibility to respond to a potential rebound in automotive electrification.

Strengthening capabilities in Mexico

The adjustment includes the elimination of approximately 390 positions in Monterrey, alongside the creation of around 100 new jobs in Puebla and La Silla. These locations will centralize operations, reinforcing their role within SKF’s regional manufacturing strategy.

This decision is part of a broader consolidation process aimed at aligning production with current market conditions, while strengthening SKF’s presence in Mexico as a key node within its manufacturing network in the Americas.

The restructuring is expected to cost approximately 500 million Swedish kronor, which will be recorded in the second quarter of 2026 and has already been incorporated into the company’s annual financial guidance.

This move reflects how the industry is adjusting installed capacity in response to shifts in global demand, while continuing to maintain operations and investment in the country. In this context, Mexico remains a strategic destination for advanced manufacturing, supported by infrastructure and talent that enable companies to reorganize and sustain competitiveness.