Trelleborg, Sweden – Trelleborg is extending its previously announced coronavirus-induced restructuring in anticipation of the long-term effects of the pandemic.
The Swedish polymer engineering group expects the costs of the reorganisation to amount to SEK700m ($78m) for the full year 2020. This is more than twice the SEK300m announced earlier in the year.
The measures are expected to bring in savings of SEK700m on a full-year basis from 2022, Trelleborg announced on 20 July. These initiatives, it said, will address production and sales structures in all business areas, with the aim of enhancing the efficiency of the organisation.
'We believe coronavirus will change the environment long-term in some areas, so we start preparing for a new normal by implementing some extraordinary measures,' said Trelleborg media relations VP Karin Larsson in a written statement.
The industrial solutions and sealing solutions business areas will each bear about a third of the restructuring costs. The remainder will be split equally between the wheel systems business area and its business under development group.
The restructuring programme will entail a mix of measures, including job cuts, Larsson said. 'We have communicated job cuts in Trelleborg businesses working within aerospace and automotive, segments particularly hit by the effects of coronavirus,' she added.
Among other measures, Trelleborg has decided to consolidate its offshore oil & gas facility in Brazil, and transfer that production to other sites within the group.
On the upside, Larsson said, the company is investing SEK1.2 bn in its manufacturing facilities and product innovation this year. 'That is lower than we expected in 2019 but still a significant figure,' she said.
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