STOCKHOLM, Sweden, April 11, 2002 (PRIMEZONE) -- The Trelleborg Group's Wheel Systems business area is continuing its program of restructuring measures, which are designed to increase production efficiency. The second stage of the program has now been initiated and means that operations at Evergem in Belgium, which mainly focus on industrial tires, is proposed to be moved to the business area's units in Sri Lanka and Spain.
The background is primarily a need to adjust production capacity as well as a move for sharper efficiency and thereby a lower cost base.
The first stage of the restructuring program was presented in December 2001 and covered parts of the production organization in the Trelleborg area of Sweden. The proposed relocation of the business area's production operations in Belgium is the second main stage of the program.
It is assumed that the project will be completed during this year. The number of employees at the Wheel Systems units in Belgium is proposed to be reduced with 126 out of 185.
The costs and the estimated savings are in line with the original project plan communicated in the Trelleborg Groups Nine-month Report 2001.
For this whole restructuring program, costs of SEK 200 M were charged against earnings for the fourth quarter. Of this amount, approximately SEK 130 M affects cash flow, mainly in 2002. The estimated payback time on the portion affecting cash flow is approximately two years, with a positive effect on earnings beginning in the second half of 2002. The program is expected to produce a full effect, corresponding to slightly more than SEK 70 M, as of 2004.
Trelleborg is a global industrial group. Operations are based on spearhead competence within polymer materials and a high level of industrial know-how, combined with functional solutions and systems designed to meet the needs of our customers. The Trelleborg Group has annual sales of approximately SEK 19 billion, with about 16,000 employees in 40 countries. Trelleborg consists of four business areas: Trelleborg Automotive, Trelleborg Wheel Systems, Trelleborg Engineered Systems and Trelleborg Building Systems. The Trelleborg share has been quoted on the A list of Stockholmsborsen (the Stockholm Exchange) since 1964.
This information was brought to you by Waymaker http://www.waymaker.net