GERMANY – Swedish multinational company that manufactures bearings and seals SKF has signed an agreement to acquire 2C Composites, a German high-performance fibre composite supplier.
The global leader in the bearing industry says the acquisition will enable it to secure the supply of a leading and unique technology of composite layers which will strengthen the Group’s magnetic bearings offer.
Magnetic bearings are a type of bearing that uses magnetic force to levitate a rotating shaft. This eliminates the need for physical contact between the shaft and the bearing.
This type of bearing possesses several advantages over traditional bearings, including No friction or wear, High efficiency, High speed, and Low vibration.
Magnetic bearings are commonly used in turbomachinery, such as compressors, turbines, and pumps.
2C Composites produces tubes, rotors, rolls and braided sleeves by braiding, cutting, and melting both carbon and ceramic fibres in self-developed machinery.
Frédéric Ponson, Director, SKF Magnetic Bearings, says: “This acquisition will help us to further grow and develop our magnetic bearings business.
2C Composites has developed a leading and unique technology of composite layers that, besides strengthening our magnetic bearings offer to existing customers, also has the potential to grow the business with additional promising revenue streams.”
Magnetic bearings are one of SKF’s technology growth areas. In 2022, the Group secured a record order intake for these products of over SEK 1 billion.
The acquisition of 2C follows SKF’s recently released Q3 results where the company’s Net sales increased in the quarter to SEK 25.8 billion (25.0) with organic growth being relatively flat (-0.6%).
The adjusted operating profit in the third quarter was SEK 3.0 billion (2.1) with a margin of 11.5% (8.5%) mainly driven by pricing, cost management and what the group described as continuing portfolio pruning actions.
During the quarter, SKF was also affected by the increased geopolitical tension in the world, with its factory in Lutsk, Ukraine, hit by a Russian missile attack in August.
The company revealed that the missile attack resulted in the death of three of its employees and damages to the factory.
“After the attack, production was suspended and alternative supply chain options and re-routing of production from Lutsk to other factories were quickly activated to mitigate any negative impact on our customers,” SKF said.