TRELLEBORG, Sweden (June 19) — Trelleborg Wheel Systems S.p.A. plans to close its wheel factory in Hadsten, Denmark, and move production to a new plant in Liepaja, Latvia.
The Latvian facility will open in the second quarter of 2008, and the Danish plant will close by the end of 2008, when about 70 of the 80 employees will be laid off, Trelleborg said. An office for product development and sales will remain in the Hadsten area.
The closing and relocation will cost about $3.6 million before taxes, the company said. Trelleborg is investing about $4.3 million in the new plant in Latvia.
The operation in Hadsten focuses on rims for special tires for agricultural machines and other selected industrial segments.