Chinese domestic parts and components can fully meet supporting requirements

"Equipping the world with knowledge" has become a core philosophy that Sweden's SKF has been promoting in recent years. During a visit to SKF's North American headquarters, several Chinese journalists asked the same question: What does this phrase really mean? Trig, President of SKF Automotive (Trygve Sthen), explained, "We have a joint venture in southern Beijing. Since its establishment nine years ago, we've never had any quality issues in the market. This is the result of applying our knowledge and technology to meet customer needs." After visiting the company's technology center, the reporters gained a deeper understanding of this concept. They observed that SKF doesn't just conduct routine product tests; they also perform extensive analysis on raw materials, including steel hardness, geometric measurements, metal composition, and heat treatment structure requirements. Some of the lab projects and equipment are as advanced as those found in university chemistry labs. Stan emphasized that SKF’s vision is to equip the world with its accumulated knowledge—experience gathered over 100 years through collaboration with industries worldwide. The goal is to pass this knowledge to customers through products, solutions, and services. When asked if Chinese customers would receive the same treatment, Stan responded positively: “We develop products exclusively based on customer needs. If Chinese companies have specific demands, we will bring the most advanced technology into China without hesitation.” However, he also pointed out that some Chinese companies are hesitant to adopt new technologies, fearing cost pressures. For instance, while SKF has developed the third generation of bearings, many in the Chinese automotive industry still use the first generation, with only a small portion using the second. This contrasts sharply with the proactive approach seen in European and American markets. To balance innovation with cost efficiency, SKF has been accelerating the localization of its suppliers since entering China. After ten years, 90% of its suppliers are now fully localized. Their goal is to achieve 100% product support in China by 2008. Stan said that their supplier evaluation system is comprehensive, covering technical capabilities, quality, and financial stability. So far, components from China meet these high standards. Additionally, local suppliers offer faster response times, reducing matching costs and improving overall efficiency. SKF was one of the earlier foreign-invested companies to enter China. But Stan believes more is needed. He plans to further accelerate investment in China, not only through the two factories currently under construction but also via mergers and acquisitions. Regarding whether sole proprietorship or joint ventures are better, Stan said both models have their advantages. “In the past, we used joint ventures to enter the Chinese market more quickly. Now, our joint ventures in China are thriving, and both parties benefit. While we now understand the market better, it doesn’t mean we can’t continue with joint ventures,” he added. This year marks SKF’s 99th anniversary. It currently operates five production plants in China, with two more under construction and set to launch this year. Last year, the company achieved sales of 517 million yuan in China.

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