Trelleborg starts negotiations on relocation of manufacturing to Estonia

Trelleborg starts negotiations on relocation of manufacturing to Estonia

To ensure the future competitiveness of the Trelleborg Group's business unit for
molded components in Sweden, a decision has been taken to request negotiations
with affected trade unions regarding discontinuation and relocation of
operations from Mörbylånga, Sweden, to the business unit's other plants. This
decision is part of the process to create a more efficient production structure
with fewer and more specialized units, thus ensuring future cost-effectiveness
for these operations.

Manufacturing in Mörbylånga consists of special polymer components, primarily
for heavy trucks. The study on which the decision to request negotiations was
based assumed that production will primarily be relocated to the business unit's
plant in Kuressaare in Estonia, and to the business unit's other plants in
Sweden, particularly Forsheda. Subject to completion of the negotiations,
relocation of manufacturing is expected to take place in stages during 2007 and
2008, whereof the major part in 2008. Production in Mörbylånga is expected to
continue until the third quarter of 2008.

In total, 110 employees in Mörbylånga will be given notice, which has been
communicated to the County Labor Board today. In cooperation with trade union
representatives, work will be started to support the affected employees and to
plan action programs to help them find new employment both within the Group and
with other employers.

Trelleborg's unit in Kuresaare on the island of Saaremaa in Estonia, Ou Saare
Martex, was acquired in its entirety in April 2007. These operations, which
currently employ some 50 persons, will have about 120 employees when the
relocation is completed.

The costs for discontinuation and restructuring are estimated at about SEK 30 M
before tax, of which the major share will affect cash flow during 2007 and 2008.
In addition, investments will amount to about SEK 20 M. The anticipated
continuous cost savings mean that the project in its entirety is expected to
have a relatively short payback time.


Further information can be obtained from Viktoria Bergman, Trelleborg's Senior
Vice President, Corporate Communications, +46 (0)410-670 94, +46 (0)708-47 57
33, or from Mikael Byström, Trelleborg's Senior Vice President Investor
Relations, +46 (0)410-670 37, +46 (0)708-55 21 69.

Trelleborg is a global industrial group whose leading positions are based on
advanced polymer technology and in-depth applications know-how. Trelleborg
develops high-performance solutions that seal, damp and protect in demanding
industrial environments. The Trelleborg Group had annual sales 2006 of
approximately SEK 27 billion, with about 24,000 employees in 40 countries. The
Group comprises four business areas: Trelleborg Engineered Systems, Trelleborg
Automotive, Trelleborg Sealing Solutions and Trelleborg Wheel Systems. The
Trelleborg share has been listed on the Stockholm Stock Exchange since 1964 and
is listed on the OMX Nordic List, large cap.                                    
                                              www.trelleborg.com