Trelleborg Automotive restructures in France

Trelleborg Automotive restructures in France

Proposes downsizing of operations in Fluid Solutions business unit in Nantes 


A decision has been made to initiate consultations regarding an action program
that will involve the restructuring of the Fluid Solutions business unit in
Nantes, France, which is part of Trelleborg Automotive. The program will result
in sizeable parts of Fluid Solutions in Nantes being proposed for transfer to
existing plants in Turkey, Poland and Spain. This program is additional to the
action program already announced in November 2006.

“For some time now, the performance of Fluid Solutions has been highly
unsatisfactory,” says Roger Johansson, Business Area President of Trelleborg
Automotive. “These structural changes are necessary to recreate profitability
and achieve an improved strategic position. Through these changes, we move
further closer to our customers' growth areas and, at the same time, can meet
the rising demands for cost-efficient production.”

In total, the action program is expected to affect approximately 450 persons, of
whom approximately 310 are full-time employees and approximately 140 are
temporarily employed. The trade union representatives have been informed and
consultations will be initiated. The plant units affected mainly manufacture
hose solutions for engine cooling and air intake. In addition, certain other
shared functions will be affected as a consequence of the action program.

The costs of the action program in Fluid Solutions in Nantes are estimated at
about SEK 400 M before tax and about SEK 275 M after tax, most of which will be
charged to the second quarter of 2008. The estimated cash effect amounts to
approximately SEK 275 M and is expected to mainly be charged to 2009. The
measures are expected to have a cash-impacting repayment time of about three
years from implementation. The positive earnings effect per year is estimated at
approximately SEK 110 M before tax and with full impact in 2011, but most of the
improvements are expected to occur during 2010.



For further information, please contact: 
Media: Vice President Mikael Sjöblom, Tel: 0410 - 670 15 , 0733 - 74 70 15,
E-mail: mikael.sjoblom@trelleborg.com
Investors/analysts: Vice President IR Conny Torstensson, Tel: 0410 - 670 70,
0734 - 08 70 70, E-mail: conny.torstensson@trelleborg.com

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 2007 of
approximately SEK 31 billion, with about 25,000 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