Full focus on Group’s strategically well-positioned core operations
Trelleborg’s Businesses Under Development reporting segment is to be discontinued, since its operations have been largely divested or are intended to be divested during 2021.
“In December 2019, we initiated a strategic review of a number of operations where different structural alternatives were evaluated. We are nearing the end of that journey and therefore are reporting what the future Trelleborg will look like. The organizational changes will enable us to fully focus on continuing to develop and further strengthen our already high-performing and well-positioned business areas,” says Peter Nilsson, President and CEO of Trelleborg.
Since the review started, a number of operations within the reporting segment have been divested, which has been communicated separately. These operations had at the time of the divestments, annual sales of a total of approximately SEK 660 M.
The other operations within the reporting segment will going forward be reported as follows:
Assets held for sale
In the financial statements, the Norwegian oil and gas operation, the printing blankets operations and the Czech technical rubber products operations, will be reported as assets held for sale. Trelleborg’s current assessment is that it is highly probable that these will be divested during 2021. These operations had annual sales of approximately SEK 2,000 M in 2020.
Integrated in core operations
Three operations will be integrated into the Trelleborg Industrial Solutions business area. One is a microspheres product area; components that are included in high quality composite materials for a wide range of uses. Another is an operation focusing on solutions in polyurethane for a range of industrial niche applications. The third, is a bearings and sealing solutions product area whose components are deployed in engineered polymer solutions, for example, in installations of offshore wind applications. The common denominator for these operations is that they have improved their profitability and positions and fit well with Trelleborg’s strategy of securing leading positions in selected segments and niches. These operations had annual sales of approximately SEK 580 M in 2020.
In the Czech molded components operation, which has a large exposure to the automotive industry, investments and structural improvements are ongoing. These are expected to lead to a clearly improved profitability and a better market position. Until these structural improvements are fully carried out, the operation will be reported within Group activities, formerly known as Group items. It had annual sales of approximately SEK 420 M in 2020.
The new organization will be reflected in Trelleborg’s first quarter report for 2021. Historical sales and earnings figures will be communicated as soon as they have been verified.