Trelleborg, Sweden -- Trelleborg AB said it will close its Peru, Ind., auto parts plant by the end of the year as part of a restructuring programme that began in 2006.
The shutdown will affect about 200 employees, and the remaining business from the facility will be reassigned to other Trelleborg plants in the US, the company said. Peter Nilsson, Trelleborg CEO and president, said the downturn in demand and overall medium-term prospects in the North American automotive market, coupled with the need to adjust capacity and improve the firm's cost structure in the region, are behind the decision.
The Swedish firm said an initiative is under way to support the employees at the facility who are impacted by the closing.
Trelleborg said the closure will cost the company about $17.6 million before taxes. The firm expects to have an annual $6.4 million positive affect on earnings from the decision from 2009.
From Rubber & Plastics News (A Crain publication)
Press release from Trelleborg.