TRELLEBORG, Sweden—The integration of Czech rubber company CGS with Trelleborg A.B. is proving to be a "relatively complex" process, according to President and CEO Peter Nilsson.
"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 in an internal interview published in Trelleborg's annual report.
Trelleborg 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," Nilsson said.
According to the Trelleborg official, the company created a new sales organization in 2017 to better leverage synergies, which he said will mostly occur in 2018 and beyond.
After years of weak demand, Nilsson said the market for agricultural tires had a relatively good year as regards sales in several geographies, primarily to original equipment 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.