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Sweden's SKF signs performance-based contract with Brazilian steelmaker Gerdau

STOCKHOLM, Dec 6 (Reuters) - Swedish bearings maker SKF has signed a performance-based deal with Brazil’s largest steelmaker, Gerdau, aimed at increasing productivity and reducing unplanned downtime at two of Gerdau’s steel mills.

SKF sees such contracts, where it gets paid a fee based on pre-agreed performance levels of the customer’s machinery rather than its traditional transaction-based model, as a major part of its future strategy.

It has signed such deals with paper and pulp maker Nordic Paper and packaging materials group BillerudKorsnas in recent months.

SKF claims it can help clients boost output, cut maintenance costs and at the same time make operations more sustainable, by working in the performance-based model.

“The agreement will see SKF provide a full range of products, including bearings, remanufacturing, lubrication systems and connected condition monitoring units,” it said in a statement.

SKF said that data from critical machinery at Gerdau’s two steel mills will be analysed at SKF’s Rotating Equipment Performance Center in Brazil.

“Based on this analysis, SKF and Gerdau can plan maintenance and corrective actions, improving machine reliability and performance.” (Reporting by Johannes Hellstrom; Editing by Emelia Sithole-Matarise)