Trelleborg, Sweden - Trelleborg Group has started talks with trade unions regarding the closure of its protective products operation in Ystad, Sweden.
The Swedish rubber products manufacturer plans to relocate manufacturing to facilities in Taurage, Lithuania, and Hull, UK, and the head office of the operation to Trelleborg.
Trelleborg expects production in Ystad to continue until the middle of 2007.
The firm plans to release 66 employees and incur restructuring and closure costs of SEK 13 million (â‚¬1.39 million) before tax in 2007.
Trelleborg estimates an annual boost to earnings from the closure to be SEK 10 million as of the third quarter of 2007.
â€œThis decision has been made to ensure future cost-efficiency for this labour-intensive business, which is exposed to increasing competitiveness and rising raw
materials prices,â€ a statement from Trelleborg said.
The Ystad facility primarily manufactures chemical protective and diving suits.