Trelleborg says integration of CGS “complex”
Trelleborg, Sweden – The integration of Czech rubber company CGS with Trelleborg is proving to be a “relatively complex” process, according to president and CEO Peter Nilsson.
In an internal interview published in Trelleborg’s annual report, Nilsson said work was being done “in several dimensions.”
“In general, we have worked with it in two stages. The first one, which has started, was to secure and develop continued customer relations and sales channels,” the Trelleborg boss said.
What the company is focusing more on now is continuing to improve the cost and revenue aspects, in part by creating synergies.
“For example, it’s a question of how we can reduce the complexity in our manufacturing and make more efficient use of our manufacturing facilities,” said Nilsson.
According to the Trelleborg official, the company created a new sales organisation in 2017 “to better leverage the synergies”, which he said will mostly occur in 2018 and going forward.
After years of weak demand, said Nilsson, the market for agricultural tires had “a relatively good year” as regards sales in several geographies, primarily to OE manufacturers.
In addition to CGS’s tire business Mitas, Nilsson pointed to other operations focused on engineered polymer systems for general industry and the automotive segment.
“During the year, we prepared these operations for the integration with existing business areas. This occurred around the [start of this] year,” he said.