Further concentration of Haldex CVS’ North American manufacturing to the plant in Monterrey, Mexico
As a final step in the earlier announced Cost-Reduction Program, Haldex conducted a review of Commercial Vehicles Systems’ (CVS) production structure in North America. The review resulted in measures for a further concentration of CVS’ North American manufacturing to the Haldex plant in Monterrey, Mexico.
The plant is located in a region of increasing significance for the North American automotive industry and has recently undergone an investment program.
Within the framework of the review, manufacturing from Haldex’s plant in Iola, Kansas, will be relocated to Monterrey, whereupon the operation in Iola will be discontinued during the second half of 2010. The production of brake cylinders was relocated to the operation in Monterrey earlier.
Costs for the planned measures will amount to USD 5.6 m (about SEK 45 m) and will generate annual savings of USD 6 m (about SEK 50 m).
In addition, personnel cutbacks are planned for certain areas of CVS’s operations, the costs for which are expected to amount to SEK 10-15 m, and will generate annual savings of approximately the same amount.
The costs will be charged to earnings in the third quarter of 2010.
For additional information, please contact:
Joakim Olsson, President and Group CEO, phone +46 8 545 049 52 or Stefan Johansson, CFO, phone +46 8 545 049 51.
Haldex (www.haldex.com), headquartered in Stockholm, Sweden, is a provider of proprietary and innovative solutions to the global vehicle industry, with focus on products in vehicles that enhance safety, environment and vehicle dynamics. Haldex is listed on the Nasdaq OMX Stockholm Stock Exchange and had net sales of nearly 5.5 billion SEK in 2009. The number of employees amounts to about 4,000.
Haldex discloses the information in this press release according to the Swedish Securities Market Act and/or the Swedish Financial Trading Act. The information was provided for public release on Friday July 16, 2010.