Trelleborg to slash auto hose output in France

ERJ staff report (DS)

Trelleborg, Sweden -- Trelleborg Automotive has said it will soon begin negotiations with worker representatives with the aim of substantially reducing the output of automotive hose from its unit in Nantes, France. 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.

In total, the action program is expected to affect approximately 450 workers, of whom around 310 are full-time employees an 140 are temporary staff. The plant units affected mainly manufacture hose solutions for engine cooling and air intake. Trelleborg said 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 (Euro 42.7 million) 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.

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Press release from Trelleborg