Analysis: Trelleborg’s AVS shake-up

Article published in the September/October edition of European Rubber Journal magazine

Sweden: Trelleborg has acquired Freudenberg-owned Schwab Vibration Control, the latest in a series of acquisitions and expansions across the Swedish rubber group.

Based in Velten, Germany, Schwab develops and manufactures anti-vibration and suspension products and technologies for the rail industry and off-highway products.

The purchase came on the back of another transaction with German rubber giant Freudenberg earlier in the year.

In a €8.4-billion deal, Trelleborg sold its shares in the Vibracoustic automotive parts joint venture with German-based rubber company Freudenberg in July.

Originally called TrelleborgVibracoustic when the 50/50 jv was formed in 2012, the company consisted of Trelleborg’s automotive and Freudenberg’s corresponding anti-vibration solutions operation.

Structural changes

In the words of company CEO Peter Nilsson, 2016 is the year of “major structural changes” for the group, another highlight of which was the group’s €1.1-billion purchase of Prague-based CGS in June.

While the lion’s share of CGS sales comes from its Mitas tire business, the acquisition also added two sizeable rubber producers – Rubena and Savatech with a combined sales of just under €600 million in 2015 – to Trelleborg’s stable.

Slovenia-based Savatech manufactures industrial rubber products, including rubber profiles for the building industry, conveyor belts for industrial applications and moulded products.

The Czech-based Rubena offers rubber sealing and anti-vibration systems (AVS) – further strengthening Trellborg’s position in this area.

AVS growth

In February, Trelleborg brought on-board Max Billinger as managing director of its industrial AVS operation, as part of a wider strategy to strengthen its position in the market.

The industry veteran has previously held senior level roles across Europe in the rail, automotive and off-highway sectors.

Upon the completion of the Schwab Vibration deal, Billinger said that the rail market would continue to be an area of growth for Trelleborg.

The purchase came three months after the company bought Loggers Rubbertechniek BV, a Dutch engineering company that provides engineered anti-vibration systems.

The Dordrecht-based company designs and develops systems that minimise noise and dampen vibrations and shocks, mainly for on-board ship systems.

With €12 million of sales in 2015, Trelleborg expects the Dutch addition to serve as a “marine anti-vibration solutions centre” within the company’s global industrial anti-vibration operations.