Trelleborg expands its presence in the Baltic region

Trelleborg expands its presence in the Baltic region

- transfers production from Denmark to a new unit in Latvia

A decision was made to initiate negotiations concerning the relocation of
Trelleborg's production from the Trelleborg Wheel Systems unit in Hadsten,
Denmark, to a new unit in Liepaja, Latvia. The unit is Trelleborg's first in
Latvia. Trelleborg already has operations in Lithuania and Estonia. 

The operation in Hadsten focuses on rims for special tires for agricultural
machines and other selected industrial segments. Rim manufacture is a niche area
that supports and complements Trelleborg's sales of special tires aimed at
providing complete solutions to customers within these areas.

“Through this move, we will create prerequisites for the competitive manufacture
of these relatively small series of special products,” says Maurizio Vischi,
Business Area President, Trelleborg Wheel Systems. “Liepaja has an excellent
location and a good competency base. The relocation will help to restore
profitability and result in improvements in the cost structure of products of
this type, which will strengthen our competitiveness.”
The investigation, which forms the basis for the decision to initiate
negotiations, forecasts the gradual relocation of production to the unit in
Liepaja, Latvia, during 2008. Production in Hadsten is expected to continue
until the end of 2008. The start of operations at the new unit in Latvia is
scheduled for the second quarter of 2008. The unit will have approximately 70
employees. 

About 80 people are employed in Hadsten. A total of approximately 70 employees
are affected by the closure and relocation. An office for product development
and sales will remain in the Hadsten area. 

In cooperation with employee representatives, work will commence to support
affected employees and action programs will be planned to assist them in finding
new employment, both inside and outside the Group.

The cost of closure and production relocation from Hadsten is expected to amount
to approximately SEK 25 M before tax, most of which will affect cash flow
primarily during 2007 and 2008. Trelleborg plans to divest the existing property
in Denmark, contributing to a short payback period for the entire project. The
investment in production in Latvia amounts to approximately SEK 30 M over a
two-year period. 


Further information can be obtained from Viktoria Bergman, Trelleborg's Senior
Vice President, Corporate Communications, +46 (0)410-670 94, +46 (0)708-47 57
33, or from Mikael Byström, Trelleborg's Senior Vice President Investor
Relations, +46 (0)708-55 21 69.

Trelleborg is a global industrial group whose leading positions are based on
advanced polymer technology and in-depth applications know-how. Trelleborg
develops high-performance solutions that seal, damp and protect in demanding
industrial environments. The Trelleborg Group has annual sales of approximately
SEK 27 billion, with about 23,000 employees in 40 countries. The Group comprises
four business areas: Trelleborg Engineered Systems, Trelleborg Automotive,
Trelleborg Sealing Solutions and Trelleborg Wheel Systems. The Trelleborg share
has been listed on the Stockholm Stock Exchange since 1964 and is listed on the
OMX Nordic List, large cap.          www.trelleborg.com