Structural rationalization measures within Automotive North America completed
Structural rationalization measures within Automotive North America completed The closure of the Trelleborg Group plant in Logansport, Indiana, US, has now been completed. All production at the Logansport plant has been transferred to primarily other units within Trelleborg North America's operations. "We are pleased to be able to report the completion of these structural rationalization measures," comments Trelleborg CEO Fredrik Arp. "We now have a satisfactory production structure within Automotive in North America, which is an important step toward achieving our margin goal for 2006." In conjunction with the closure of the Logansport plant, an agreement was reached with the United Steelworkers' Association (USWA). The agreement, which affects approximately 300 employees, relates to pension issues, healthcare cover and termination pay. The agreement means that apart from the allocated restructuring reserve, an additional SEK 60 M in costs for the closure will be charged against Trelleborg's consolidated operating earnings for the second quarter of 2004. The estimated impact on earnings, after tax, will be about SEK 40 M. The positive effects of the transfer of production are estimated to amount to SEK 60 M on an annual basis, as of midyear 2004. The anticipated effect on earnings, after tax, will be approximately SEK 40 M. For further information, please contact CFP Bo Jacobsson +46 (0) 410 67099, or +46 0706 856560, or Senior Vice President Corporate Communications Mikael Byström, +46 0708 552169. 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 customers. The Trelleborg Group has annual sales of approximately SEK 22.5 billion, with about 21,000 employees in 40 countries. Trelleborg consists of five business areas: Trelleborg Automotive, Trelleborg Wheel Systems, Trelleborg Engineered Systems, Trelleborg Building Systems and Trelleborg Sealing Solutions 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/2004/07/01/20040701BIT20140/wkr0010.pdf