Trelleborg to close auto components plant in US
Concluding stage in integration of BTR/LACD: Trelleborg to close auto components plant in US and relocate production to other units Trelleborg Group business area Trelleborg Automotive is continuing the integration and rationalization program initiated in conjunction with the acquisition of the auto components companies BTR and LACD. Since the program started, the number of plant units in the business area has been reduced by six. The final stage of the program has now been started and means that the plant in Logansport, Indiana, will be shut down and production relocated mainly to the business areas unit in Peru, Indiana, and other plants in US. The Logansport plant produces mainly antivibration products, such as suspension bushings and welded links. The plant has a total of 335 employees, including 50 salaried staff. Most of the production will be relocated to other units during 2003 and the project is expected to be completed by mid-year 2004. The costs of the closure and relocation of production are estimated to total approximately SEK 110 M, of which about SEK 50 M will have an effect on cash flow, mainly during 2004. These costs will be covered by the allocation made to a restructuring reserve at the time the BTR units were acquired. The positive effect of the production relocation on earnings is expected to amount to slightly more than SEK 45 M, with a full effect in 2005, of which about SEK 20 M will occur as early as during 2004. For further information, please contact: George Caplea, President of Trelleborg Automotive, +49 171 5411107 or CFO Bo Jacobsson, tel +46 410 67099, mobile +46 706856560 or the Trelleborg Corporate Communications Department, +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 18 billion, with about 15,000 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. www.trelleborg.com ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/06/19/20030619BIT00150/wkr0001.doc http://www.waymaker.net/bitonline/2003/06/19/20030619BIT00150/wkr0002.pdf