Trelleborg initiates consultations on closure of UK plant
As part of the strategic and operational action program announced at Trelleborg’s Capital Markets Day in November 2006, a decision has been made to initiate consultations with the Employee Consultative Committee regarding the closure and transfer of Trelleborg’s operations from West Thurrock, in the UK.
The operation in West Thurrock is included in the Fluid & Acoustic Solutions business unit and manufactures polymer-based vehicle components, such as noise-absorbing products. Employees number approximately 170. The investigation on which the decision to call for consultation is based projects that most of the production will be transferred to other of the business unit’s plants in Europe. Production in West Thurrock is expected to continue until year-end 2007.
In total, approximately 150 employees are at risk of redundancy, of which about 40 are salaried employees. There are plans to retain a local sales office. In cooperation with the Employee Consultative Committee, efforts will commence to support the employees affected and to plan a program of measures to assist in finding new employment within and outside the Group.
It is estimated that the costs of the closure of the plant in West Thurrock will amount to about SEK 140 M before tax, most of which will affect cash balances in 2007-2009. Costs will mainly be charged to the result during the first quarter 2007. The positive earnings effect is expected to amount to about SEK 45 M before tax on an annual basis, with full impact as of 2008.