Sweden’s SKF to exit Russia, take 500 million SEK write-down

STOCKHOLM (Reuters) -Swedish bearings maker SKF said on Friday it would leave Russia and take a related write-down of 500 million crowns ($52.4 million) in the second quarter.

Sales in Russia accounted for roughly 2% of the company’s total sales in 2021.

“The Russian invasion of Ukraine has a severe effect on our operations in both Ukraine and Russia,” SKF CEO Rickard Gustafson said in a statement. “We have concluded that it is impossible for us to continue our operations in Russia, as the basis and stability for our business does not exist.”

SKF, which has about 270 employees in total in Russia, said it intended to divest the business “in a controlled manner” with the ambition of ensuring a future for its employees.

SKF, the world’s biggest maker of industrial bearings, has one factory in Russia that employs around 80 people and manufactures bearings for the railway industry.

SKF has 1,100 employees in Ukraine and the country accounted for less than 0.5% of sales in 2021.

($1 = 9.5416 Swedish crowns)

(Reporting by Helena Soderpalm; Editing by Johan Ahlander and Simon Johnson)