GOTHENBURG, Sweden (News release) -- SKF and Nordic Paper have signed a five-year fee- and performance-based contract. The agreement aims to improve Nordic Paper's productivity, health and safety and sustainability performance.

Nordic Paper is a pulp and paper manufacturer with operations at four sites, producing craft and natural greaseproof paper. The site in Säffle, which produces greaseproof paper, is covered by the agreement.

Mattias Årstadius, SKF's Head of Industrial Sales in Sweden and Norway, says: "More and more customers are becoming open to new, fee-based business models, especially as we can show that these models help improve the competitiveness of their machines."

The agreement will see increased automation and digitalization of PM2 in Säffle. During the summer of 2019, work has commenced on installing 500 lubrication points and 230 condition monitoring points, all of which are connected to SKF's IMx monitoring system. Data from the connected machinery will be monitored and analyzed at SKF's Rotating Equipment Performance Center in Gothenburg, Sweden.

Peter Bergkvist, Nordic Paper's Mill Manager in Säffle, says: "Working with SKF has enabled us to develop a better understanding of our machines, as well as given us the opportunity to increase the competence of our own staff."

"Our paper is made from locally sourced materials and is good for the environment, as it does not have any added fluorocarbons. Working with SKF is in line with our ambitions to run our operations in a sustainable and responsible manner."

SKF's fee-based business model is developed around the customer's needs and productivity targets. Based on these, SKF is able to offer an appropriate combination of products and services.

Janne Westerlund, Lubrication Sales Manager, SKF Sweden, says: "We are starting a joint journey in increasing the automation and digitalization of PM2. By combining our products and knowledge, we can together improve the performance of the machine, based on the agreed parameters."