"Through the center, we aim to increase flexibility on stocking plans, reduce complexity of inventory structure arising from multi-currency transactions, and provide support for our global resource allocation and cost reduction," Johnstone says.

As in many business narratives, SKF's early presence in China followed the route of appointing an agent, setting up a sales company and, after decades of inactivity, resuming business and introducing manufacturing facilities following the launch of the reform and opening-up policy.

SKF makes products for around 40 industries, including automobiles, aerospace, wind energy, construction and industrial transmission. Its bearings are widely used in products ranging from household appliances to aircraft and helicopters.

It is also present in sectors like lubrication, seals, mechatronics and services with its active mergers and acquisitions.

The company operates 18 manufacturing units and several service units in China. Primarily a business-to-business company, it delivers products, solutions and services to original equipment manufacturers and end-users.

"One of the priorities of Shanghai Free Trade Zone is to foster and develop Asia-Pacific operation centers and operational headquarters integrating logistic and settlement functions, which highly corresponds to the development goal of SKF North East Asia Distribution Center," says Dai Haibo, executive deputy director of Shanghai Free Trade Zone Management Committee.

According to Johnstone, the facility has already carried out some innovative trade and settlement measures with the support from Shanghai Free Trade Zone, including classified supervision by status of goods, strengthened function of delivering goods in batches, making centralized customs declaration, and opening international settlement accounts.

These greatly facilitated trade and contributed to the efficient and quick flow of funds.

"In a sense, the future development of SKF North East Asia Distribution Center will be the epitome of China's effort to strengthen its construction as a resource allocation hub in the global trade system," he says.

China accounts for more than 12 percent of SKF's global sales of 63.6 billion Swedish krona ($9.3 billion) in 2013.

While partly offset by the temporary cooling in the world's second-largest economy, growth still outpaced that of most other regions, Johnstone says.

Though economic uncertainty has seen some multinational companies winding down operations, SKF has never been hesitant about adding investment here.

Johnstone foresees the automobile, railway and renewable energy sectors enjoying growth.

To sustain its growth, SKF has put more resources into research and development and the country's automotive market by establishing a new SKF campus in Shanghai's suburban Jiading district to support growth in China and across Asia.

The 700 million krona-investment includes the setting up of a new automotive factory that produces hub-bearing units for passenger cars and also the relocation and expansion of the Global Technical Center China, SKF Solution Factory and SKF College.

The rationale of Johnstone is that the campus effectively integrates various SKF resources in product development, engineering, manufacturing, testing and training, which attract customers with more high value-added products and services.