Trelleborg expands in Brazil

ERJ staff report (DS)

Santana de Parnaiba, Brazil -- Trelleborg is investing in Brazil, by buying a plant to make hoses for the oil industry and adding capacity for printing blankets for the printing industry.

Through its Trelleborg Engineered Systems business area, Trelleborg has signed an agreement to acquire a business in the offshore oil and gas industry in Brazil from a subsidiary of Veyance Technologies Inc. The business focuses on specially designed oil hoses for surface and deep-sea applications for the strongly growing offshore oil and gas extraction industry in Brazil.

The plant is located in Santana de Parnaiba, close to São Paulo. Trelleborg will take over the lease on the facility, which is 15,000 m², acquire the existing equipment and assume responsibility for the some 100 employees. The seller is Veyance Technologies do Brasil Produtos de Engenharia Ltda.

The acquisition is expected to be finalised in the first quarter of 2011, and will be followed by investments in supplementary production equipment. It is anticipated that production can commence gradually as of the second half of 2011. The purchase consideration is approximately SEK 40 million (euro 4.5 million) and Trelleborg will initially invest approximately SEK 25 million (euro 2.8 million) during 2011. A successive positive earnings effect is forecast from the second half of 2012.

Printing blankets

In the same factory, Trelleborg Engineered Systems will also invest in specialised production of printing blankets, aimed at creating a platform for local presence and growth in the graphics industry.

Trelleborg will invest a total of approximately SEK 45 million (euro 5 million) in production capacity in 2011 and 2012. It is anticipated that production can commence gradually by the first half of 2012.

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Press release (Hose plant acquisition) from Trelleborg

Press release (printing blanket investment) from Trelleborg