Trelleborg has signed an agreement to divest a facility that manufactures rubber boots for light vehicles. The business operation is based in Spain and is part of the Trelleborg Industrial Solutions business area. The buyer is the French Group Delmon Industrie S.A.
Trelleborg is active in the production of polymer boots for drive shaft (constant velocity joints) and steering systems (rack and pinion) for light vehicles. Generally, either rubber or thermoplastic elastomer are used for boots in these applications. Trelleborg supplies boots in both materials.
The market demand for thermoplastic elastomer boots for constant velocity joints and rack and pinion is steadily increasing, while demand for rubber boots is shrinking. Trelleborg is therefore divesting its Spanish business operation that solely manufactures rubber boots for constant velocity joints. The divestment does not affect Trelleborg’s TPE boots operations.
“The rationale behind this deal is straightforward. There is an ongoing technology shift and TPE boots are rapidly gaining market share at the expense of rubber boots. We will now put more emphasis on the faster-growing part of the light vehicle boot segment. Moreover, the TPE boot segment is a niche where we have a strong global position, and we will continue to capitalize on our technology and global capabilities in this market,” says Mikael Fryklund, President of the Trelleborg Industrial Solutions business area.
“We believe a new owner of the operation is better placed to develop it and able to supplement shrinking production of rubber boots with new products, to maintain the operation in Spain,” concludes Mikael Fryklund.
Sales from the operation in 2013 amounted to approximately SEK 150 M. The transaction will only have a negligible impact on the Group’s earnings and is expected to be concluded in the third quarter of 2014.
