Trelleborg Sealing divests unit as part of efficiency efforts

SOUTHAMPTON, England—Trelleborg A.B. continues its march toward operational efficiency worldwide, divesting in some areas and expanding in others.

As part of this restructuring effort, Trelleborg has finalized the sale of its customized metal component operation in Southampton.

The metal component division had been under the auspices of Trelleborg Sealing Solutions. The deconsolidation is effective Nov. 30.

"Trading in metal components is not a core operation for Trelleborg," said Peter Nilsson, president and CEO of Trelleborg. "We are pleased that we have found an owner who is familiar with the business and wants to continue developing it."

The buyer is an entrepreneur in the region who trades in customized metal components in Europe, according to Trelleborg.

The divested segment reported annual sales of approximately $5.74 million in 2022, according to Trelleborg financial records.

"The divestment contributes positively to cash flow but does not have any impact on the group's net profit," Trelleborg stated in a Nov. 30 release. "The divestment safeguards Trelleborg from the costs associated with the planned business restructuring."

Trelleborg A.B. has carried out a series of relocation moves as part of a group-wide drive to enhance its operational efficiency worldwide.

Measures include the July closure of Trelleborg's marine products facility in Rederkirk, Netherlands.

Production has been transferred from the Dutch site to "more cost-effective" facilities in Qingdao, China, and in Singapore, Trelleborg told the European Rubber Journal, a sister publication to Rubber News, Oct. 30. The group will, however, retain its sales and engineering "center of excellence" for its "Infra product lines" in Rotterdam, Netherlands.

Trelleborg has opened an antivibration products/systems facility in Suzhou, China, relocating production from an older unit in nearby Wuxi.

The new factory, which produces antivibration solutions for industrial equipment, rail and renewable energy applications, opened in August, though "formal inauguration will take place later."

The Swedish company has divested its Czech auto components units, and will spend about $29 million on a new seal plant in India.

In late September, Trelleborg opened a new automotive boots manufacturing facility in Carquefou, outside the French city of Nantes.

The location boasts an engineering center that develops future mobility products for all Trelleborg boot sites globally.

"Our expansion of new manufacturing facilities continues, particularly in Asia where we see favorable prospects for further growth," Nilsson said in October.