Source: Haldex
KANSAS CITY – Haldex will continue to streamline the production of brake adjusters by moving the production from the United States to Mexico. Brake adjusters are Haldex’s largest product and they will from now on be manufactured in China, India, Hungary, Brazil and Mexico.
Haldex began the process in 2018 when machining of brake adjusters in the U.S. was moved to India. In a final step, the assembly is now being moved from the plant in Blue Springs, Mo. to Mexico.
By co-locating the production of brake adjusters with the production in Mexico, Haldex’s largest production facility globally, and thereby producing more products in one facility, economies of scale are achieved. The manufacturing cost in Mexico is also significantly lower than the cost in USA. The cost saving is estimated at SEK 25 million on an annual basis, once the move is fully completed.
A total of 154 employees are affected, of which a few will be offered new positions within Haldex’s US operations. The move will start immediately and will be completed during the fourth quarter of 2020.
During the fourth quarter of 2019, earnings will be impacted with SEK 27 million as one-off costs related to the change in production.
Haldex has the financial target of reaching 10 percent operating margin in 2022, excluding investments in new technology. During the second quarter Haldex announced closure of two of its U.S. based Friction centers, resulting in SEK 6,5 million in annual savings and SEK 5 million in one-off costs.
For further information visit http://corporate.haldex.com.
About Haldex
With more than 100 years of intensely focused innovation, Haldex holds unrivaled expertise in brake systems and air suspension systems for heavy trucks, trailers and buses. The company lives and breathes its business delivering robust, technically superior solutions born from deep insight into its customers’ reality. By concentrating on its core competencies and following its strengths and passions, Haldex combines both the operating speed and flexibility required by the market. Collaborative innovation is not only the essence of the company’s products – it is also its philosophy. The company’s 2,300 employees, spread on four continents, are constantly challenging the conventional and strive to ensure that the products delivered create unique value for its customers and all end-users. Haldex, with headquarters in Landskrona, Sweden, has a global presence in terms of sales, research, development, technical service and production. It is listed on the Nasdaq Stockholm Stock Exchange and have net sales of approximately 5 billion SEK.
