Stockholm, Sweden -- Trelleborg AB is reviewing its automotive business, with special emphasis on the hose sector. Speaking at the company's capital markets day, Trelleborg president and CEO, Peter Nilsson said "A number of actions have been identified, these are being analysed and will successively be initiated and announced."
Although Nilsson declined to specifiy which sectors are under serious review, corporate sources said the hose sector will definitely be under scrutiny in terms of its mid-term future with Trelleborg. The company said it is looking at all the options but its first priority is to preserve the value of the assets under scrutiny. Trelleborg is now in the final stages of a review of its automotive activity and it intends to make significant announcements by the first quarter of 2007..
In one of the first moves, Trelleborg said it would close the AVS plant at Trowbridge UK with the loss of about 150 jobs. The activities of that factory will be moved to other plants in Romania and Spain. Nilsson said the company is also looking hard at the fluid and acoustic plant in Mannheim. he said a further 50 to 100 jobs will be afected in the short term.
About 2 months ago, Trelleborg noted that Automotive Business Unit president George Caplea would be leaving the company, Since that time, Nilsson, the ceo has been in charge of day-to-day management of the automotive unit.
Nilsson noted that the automotive sector has been underperforming, inpart because it has been extremely difficult to pass on raw materials costs to the customers. In other sectors, the customers have been more willing to accept price increases based on higher raw material costs.