Following settlement with US authorities:
Trelleborg reaches preliminary agreement regarding sale of operations in
The Trelleborg Group has reached a preliminary agreement regarding the
sale of operations within its US metals-recovery company Metech
International Inc. The South Africa-based investment company Viking,
which is listed on the Johannesburg Stock Exchange, is the purchaser
through its US subsidiary. Final negotiations regarding the sale are
expected to be concluded during the second quarter of 2002.
In conjunction with the agreement with Viking, Metech International Inc.
has reached a settlement with the United states attorney, district of
Connecticut regarding the fraudulent proceedings of the company's former
management toward its customers and the company itself.
In the settlement, Metech International Inc. pledges to repay funds
totaling USD 12.1 M to the customers affected through a restitution
pool. Furthermore, following the court's decision, the members of the
former company management have been forced to pay a substantial sum to
the restitution pool in addition to serving prison sentences of up to
2.5 years. The investigation by the authorities related to a period
extending from the late 1980s through 1995. All of the accused members
of the company's former management were sentenced during spring 2002.
Metech's current management was appointed in 1996. Metech has assisted
the authorities in their work since the investigation was started in
The costs of USD 12.1 M in the settlement reached between Metech and the
US Attorney´s Office are covered by earlier provisions, so there will be
no additional impact on Trelleborg's consolidated earnings. After tax,
the costs will total approximately USD 8.4 M.
"The preliminary agreement reached with Viking regarding this divestment
will enable us to release the capital tied up in Metech's operations in
an acceptable manner," comments Trelleborg's Chief Executive Officer
"It is also gratifying that we have now been able to reach a settlement
with the federal authorities. Metech's new management has changed the
direction of the company's operations to ensure that no similarly
fraudulent activities can be repeated and they have also kept customers
appraised of the situation during the period of the investigation."
For further information please contact Senior Vice President Mikael
Byström, telephone: +46-410 670 37 (mobile: 0708-55 21 69) or the
Trelleborg Corporate Communications Department, telephone: +46-410 670
Trelleborg is a global industrial group. Operations are based on
spearhead competence within polymer materials and a high level of
industrial know-how, combined with functional solutions and systems
designed to meet the needs of our customers. The Trelleborg Group has
annual sales of SEK 19 billion, with approximately 16,000 employees in
40 countries. Trelleborg consists of four business areas: Trelleborg
Automotive, Trelleborg Wheel Systems, Trelleborg Engineered Systems and
Trelleborg Building Systems. The Trelleborg share has been quoted on the
A list of the Stockholm Exchange since 1964.
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