Trelleborg has signed an agreement and finalized the divestment of its compounding operation in Lesina, in the Czech Republic. In financial reports the operation has been recognized as part of Group items. The buyer is Hexpol AB (publ).
The divested operation develops, produces and supplies polymer compounds. The majority of its sales are to external customers and a minor share to a small number of Trelleborg facilities in Europe.
“Our focus is on the development and production of engineered polymer-based solutions. The task of our compounding operations is to supply Group’s facilities with high quality compounds that are important components of our end products. The Czech operation has a large external customer base. This means that it also sells compounds to our direct and indirect competitors, which does not make the business sustainable for us in the long term. Therefore, it will develop better with another owner,” says Peter Nilsson, President and CEO of Trelleborg.
The divested operation, which had annual external sales of approximately SEK 300 M in 2016 and profitability in line with the level for Trelleborg, will be deconsolidated on March 31, 2017. The transaction is expected to result in a book capital gain of approximately SEK 450 M after tax.