Trelleborg intends to close UK automotive factory

Trelleborg, Sweden - Trelleborg's automotive unit has opened negotiations with union representatives with the aim of ending acoustic damper manufacture at its factory in West Thurrock, UK. The company said it wants to close the factory by the end of 2007 and transfer production to other plants in Europe.

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.

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.

Trelleborg said it estimates the costs of the move will amount to about SEK 140 M (€15.3 million) 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.

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Press release from Trelleborg