TRELLEBORG, Sweden—Trelleborg's "businesses under development" reporting segment will be discontinued as its operations have been largely divested or are likely to be divested during 2021, the Swedish polymer group said March 26.
Trelleborg created the reporting segment in a major restructuring program in December 2019, grouping together operations with weak profitability. At the time, the group said it would make a final decision on the businesses within 12-24 months.
"We are nearing the end of that (restructuring) journey and, therefore, are reporting what the future Trelleborg will look like," President and CEO Peter Nilsson said in a statement.
According to Trelleborg, since the start of the review, a number of operations within the reporting segment have been divested with total annual sales of $76 million.
Going forward, the group's Norwegian oil and gas, printing blankets and Czech technical rubber products operations will be reported as "assets held for sale" in future financial statements.
Trelleborg said it was "highly probable" these operations, with sales of $231 million, will be divested during 2021.
Three other operations will be integrated into the Trelleborg Industrial Solutions (TIS) business area, including a microspheres product area which makes "high quality composite materials for a wide range of uses."
In addition, an operation focusing on polyurethane solutions for niche industrial applications as well as a bearings and sealing solutions unit for offshore applications will be added to TIS.
These operations, Trelleborg said, have improved their profitability and "fit well" within the group's strategy focusing on leading positions in selected segments and niches.
The three operations had total annual sales of $67 million in 2020.
"The organizational changes will enable us to fully focus on continuing to develop and further strengthen our already high-performing and well-positioned business areas," Nilsson said.
The new organization will be reflected in Trelleborg's first quarter report for 2021.