Swedish supplier SKF Group has added a technical center to its new factory in the Jiading suburb of Shanghai.

In September 2008, SKF Shanghai Automotive Technologies Co. opened a $25 million (171 million yuan) factory in Jiading to supply hub bearing units to Volkswagen AG, Chery Automobile Co., General Motors and BMW Brilliance Automotive Ltd. The plant employs 300.

A technical center was added to the new plant in January to test products and support product development for domestic customers.

"We will be able to offer quick support to OE customers," says Magnus Johansson, president of SKF (China) Investment Co. "We are investing in China to be close, flexible, have short lead times and to reduce costs."

Parts can be analyzed in China without sending them to Europe for tests, he says.

In 2008 the Swedish group bought American supplier PEER Bearing Co. Its plants in Xinchang and Changshan made bearings for export to North America.

SKF also has a wholly owned plant in Wuhu, Anhui province, to supply Chery with rubber seals.

"We have a long term idea in China, which is not affected by short term things," says Johansson. "Personally I am an optimist about China, so that reflects our forecasts."