TRELLEBORG, Sweden – Trelleborg is implementing organizational changes with the aim of focusing the Group on selected segments and at the same time highlight areas where improvement in profitability must occur. The ambition is to continue to develop and strengthen already well-performing and well-positioned business areas that have sizeable global businesses.
In the new organization, the company will consist of three business areas, compared with five today. In addition, a reporting segment is being created, businesses under development. In conjunction with the changes, capital employed will be impaired by SEK 3,200 M, which will be recognized in Trelleborg’s report for the fourth quarter of 2019. It will have no cash-flow impact.
“We are now putting a stronger focus on our strategically well-positioned businesses. This will involve continued development and investments in organic growth and various types of bolt-on acquisitions, which in different ways can complement and strengthen our positions in selected segments. In parallel, we will be conducting an intensive strategic review of the operations that will be included in businesses under development. I want to be clear that we are demanding that profitability should be significantly improved within a 12–24-month period in order for these operations to be included in Group. As the improvement work is in progress, we will continuously evaluate various structural alternatives,” said Peter Nilsson, President and CEO.
The following business areas will be included in the new organization:
- Trelleborg Industrial Solutions, specializing in polymer-based niche applications and infrastructure projects
- Trelleborg Sealing Solutions, specializing in polymer-based sealing solutions
- Trelleborg Wheel Systems, specializing in tires for off-highway vehicles
Trelleborg Coated Systems and Trelleborg Offshore & Construction will be discontinued as business areas. Dario Porta, Business Area President of Trelleborg Coated Systems, will leave Trelleborg’s Group management at year-end and become Business Unit President of the printing blankets operations.
A number of operations will be transferred to a new reporting segment, called businesses under development, which will be recognized separately from the business area structure.