Trelleborg talks with unions about closing Swedish tyre factory
Trelleborg, Sweden--Trelleborg AB has announced its third quarter results and simultaneously said it has begun negotiations with relevant union representatives over the possible closure of its tyre factory in Trelleborg.
In a prepared statement, Trelleborg said it makes around 4000 tonnes of tyres annually at its Trelleborg facility, made up of farm and forestry cross-ply tyres. Trelleborg also sub-contracts some farm and forestry tyres to other manufacturers. The company said radial construction tyres are winning market share from cross-ply construction, making the Trelleborg facility less competitive.
"Assuming that negotiations are completed successfully," said the statement, "production is expected to continue until the end of 2005. A decision to discontinue tire production will also entail capacity adjustments for mixing, inventory management and administrative support functions at the Trelleborg location. In total, it is estimated that approximately 200 jobs will be affected, with about 130 of these in production and about 70 in administration."
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Download tyre factory press release (in PDF format)
Download third quarter results (in PDF format)
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