Restructuring program in Trelleborg Wheel Systems business area
Trelleborg plans to relocate production in Belgium to Sri Lanka and
The Trelleborg Group's Wheel Systems business area is continuing its
program of restructuring measures, which are designed to increase
production efficiency. The second stage of the program has now been
initiated and means that operations at Evergem in Belgium, which mainly
focus on industrial tires, is proposed to be moved to the business
area's units in Sri Lanka and Spain.
The background is primarily a need to adjust production capacity as well
as a move for sharper efficiency and thereby a lower cost base.
The first stage of the restructuring program was presented in December
2001 and covered parts of the production organization in the Trelleborg
area of Sweden. The proposed relocation of the business area's
production operations in Belgium is the second main stage of the
It is assumed that the project will be completed during this year. The
number of employees at the Wheel Systems units in Belgium is proposed to
be reduced with 126 out of 185.
The costs and the estimated savings are in line with the original
project plan communicated in the Trelleborg Groups Nine-month Report
For this whole restructuring program, costs of SEK 200 M were charged
against earnings for the fourth quarter. Of this amount, approximately
SEK 130 M affects cash flow, mainly in 2002. The estimated payback time
on the portion affecting cash flow is approximately two years, with a
positive effect on earnings beginning in the second half of 2002. The
program is expected to produce a full effect, corresponding to slightly
more than SEK 70 M, as of 2004.
For further information please contact Vice President Mikael Sjöblom,
mobile: 0708-55 21 30 or the Trelleborg Corporate Communications
Department, telephone: +46-410 670 00.
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 approximately SEK 19 billion, with about 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 Stockholmsbörsen (the Stockholm Exchange) since
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