Wednesday, December 2

Haldex Will Move Heidelberg Production in Q2

Source: Haldex

LANDSKRONA, Sweden – Haldex has completed negotiations with the employees representation in Germany regarding the closure of production in Heidelberg and the relocation of R&D.

As Haldex has previously communicated, Haldex has made a decision to concentrate the production of EBS and air suspension products to Hungary. This decision leads to the closure of the factory in Heidelberg, Germany and that research and development (R&D) will be relocated to England and Sweden.

Negotiations with the union have now been concluded, and an agreement was reached on March 20, 2020. A total of 80 people out of the 100 employees in Heidelberg will be affected.

Most of the employees have a six-month-notice period which means that they will leave the company as of September 30, 2020. All employees concerned will be offered temporary employment in a transfer company for a maximum period of 12 months.

The relocation of production equipment will take place in the second quarter of 2020 and the relocation of R&D will be finished by the end of the third quarter of 2020.

The total cost of the restructuring is estimated at EUR 14 million, corresponding to approximately SEK 156 million. Of this, the cost of redundancies and redeployment amounts to EUR 12.7 million, corresponding to approximately SEK 141 million.

Cost savings are estimated at SEK 50 million per year when the relocation is fully completed.

About Haldex

More than 100 years of powerful innovation gives Haldex unsurpassed expertise when it comes to braking systems and air suspension systems for heavy trucks, trailers and buses. The company lives and breathes its business with the goal to deliver robust and technically superior solutions which is founded in a deep insight in its customer’s reality.

Through focusing on its core competences and the shred passion, the company achieves the agility and flexibility that the market demands. Innovative collaborations are not only the core of its products, but its philosophy. The 2,300 employees, spread out across four continents, challenge the conventional on a daily basis in order to secure that the products the company delivers create a unique value to its customers and the end users. The company is listed on Nasdaq Stockholm and has a turnover of approx. 5 billion SEK.

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