Proposes downsizing of operations in Fluid Solutions business unit in Nantes
A decision has been made to initiate consultations regarding an action program that will involve the restructuring of the Fluid Solutions business unit in Nantes, France, which is part of Trelleborg Automotive. The program will result in sizeable parts of Fluid Solutions in Nantes being proposed for transfer to existing plants in Turkey, Poland and Spain. This program is additional to the action program already announced in November 2006.
“For some time now, the performance of Fluid Solutions has been highly unsatisfactory,” says Roger Johansson, Business Area President of Trelleborg Automotive. “These structural changes are necessary to recreate profitability and achieve an improved strategic position. Through these changes, we move further closer to our customers’ growth areas and, at the same time, can meet the rising demands for cost-efficient production.”
In total, the action program is expected to affect approximately 450 persons, of whom approximately 310 are full-time employees and approximately 140 are temporarily employed. The trade union representatives have been informed and consultations will be initiated. The plant units affected mainly manufacture hose solutions for engine cooling and air intake. In addition, certain other shared functions will be affected as a consequence of the action program.
The costs of the action program in Fluid Solutions in Nantes are estimated at about SEK 400 M before tax and about SEK 275 M after tax, most of which will be charged to the second quarter of 2008. The estimated cash effect amounts to approximately SEK 275 M and is expected to mainly be charged to 2009. The measures are expected to have a cash-impacting repayment time of about three years from implementation. The positive earnings effect per year is estimated at approximately SEK 110 M before tax and with full impact in 2011, but most of the improvements are expected to occur during 2010.
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