Update on the action program at Trelleborg Automotive
In addition, the relocation of Trelleborg Automotive’s operations in Peru, Indiana, USA, is progressing according to plan. Production is being moved to other plants within Trelleborg Automotive in the US. Production in Peru will continue until the fourth quarter of 2008. The decision will affect approximately 200 plant employees.
“It is good that we have reached a conclusion in France and that we can continue working on necessary activities according to the plan there,” says Roger Johansson, Business Area President for Trelleborg Automotive. “The negative trend within the automobile industry has accelerated and to date during the third quarter, the automobile markets in the US and Western Europe have been significantly weaker compared with 2007, which continues to have a negative impact on Trelleborg Automotive.”
Summary of action program within Trelleborg Automotive
The total cost for the ongoing action program within Trelleborg Automotive amounts to approximately SEK 1,275 M before tax, of which approximately SEK 1,050 M was charged to the period between 2006 and the end of June 2008. Approximately SEK 150 M is estimated to be charged against the third quarter of 2008 and the remainder is expected to be mainly charged against the fourth quarter of 2008.
In addition to the restructuring of Fluid Solutions in Nantes, France and the relocation of Trelleborg Automotive’s operation in Peru, Indiana, in the US, the ongoing action program also includes the closure and relocation of plants in Trowbridge and West Thurrock, in the UK, and Fergom, in Italy. The program also includes the divestment of the operations in Coventry, in the UK, and streamlining and staff reductions in operations in Western Europe.
This is information of the type that Trelleborg AB (publ) is obligated to disclose in accordance with the Swedish Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was issued for publication on October 1, 2008 at 08:30 CET.