Swedish group SKF has signed a 5.2 billion Swedish crown ($752 million) deal with a Chinese truck group, as the world No.1 bearings maker looks to expand in one of the world's fastest-growing heavy vehicle markets.

SKF said yesterday the seven-year deal would see it supply truck hub units, tapered roller bearings and seals for the latest models produced by China National Heavy Duty Truck Group, China's largest commercial vehicle manufacturer.

The bearings and units will be manufactured in a factory under construction in Jinan, Shandong.

"China is a key growth market for the SKF Group and we continue to make significant investments in manufacturing, research and development and in our employees," chief executive Tom Johnstone said yesterday.

Shares in SKF, which had sales of 61 billion crowns last year, were up 1.4 percent at 137.90 crowns at 0931 local time yesterday. The wider Stockholm market was up 0.7 percent.

"Such a big order is unusual in the bearing industry, it shows the company's ambition to take the fight to local players," said Handelsbanken Capital Markets analyst Peter Frolen.

Reuters