Stockholm -- Trelleborg AB has begun negotiations with trade unions regarding closing down its moulded component manufacturing plant in MÃ¶rbylÃ¥nga, Sweden and relocating it to Estonia - at the cost of SEK 30 million (â‚¬3.2 million) plus a further SEK 20 million investment.
The MÃ¶rbylÃ¥nga plant manufactures special components, mostly in rubber, mainly for heavy trucks, such as vibration-damping solutions, bushings and boots for trucks and heavy vehicles. Its customers include Scania and Volvo Trucks.
The company said, in a 28 Aug statement, that the decision is part of its process to create a more efficient production structure with fewer and more specilised units and is designed to â€œensure the future competitiveness of the Trelleborg Group's business unit for moulded components.
Relocation of manufacturing is expected to begin at the end of 2007 and carry on throughout 2008. The moulded components business unit is expected to be relocated to Trelleborg's plant in Kuressaare in Estonia as well as other plants in Sweden, particularly Forsheda, said the company, in the statement.
The company has estimated that around 110 employees will lose their jobs thanks to the closure, but it has said that it will work with trade union representatives to support those affected, and will try to find them new employment within the group.
Trelleborg said that the anticipated continuous cost savings mean that the project in its entirety is expected to have a relatively short payback time. (ss)
This is an external link and should open in a new window. ERJ is not responsible for the content of external sites.
Press release from Trelleborg