Trelleborg Invests in the US to Create Global Position for Agricultural Tires

Regulatory News:

Trelleborg (STO:TRELB)

Trelleborg has, through its business area Trelleborg Wheel Systems, decided to invest in a production facility for agricultural tires in the U.S., thereby creating a platform for local presence and growth in North America, and a global position in the market. The investment forms part of Trelleborg’s strategy to strengthen positions in attractive and profitable market segments.

"North America is the largest agricultural market in the world and it is highly attractive for us. The market for extra-large agricultural tires, where Trelleborg is a market leader, is growing in the region. Although we already sell our products in the U.S. and Canada, local production offers considerably more favorable conditions, thus enhancing our competitiveness. An expanded presence in North America is central to our growth strategy,” says Maurizio Vischi, President of the Trelleborg Wheel Systems business area.

The production will be located in an existing Trelleborg facility in Spartanburg, South Carolina, U.S. Trelleborg will invest a total of approximately SEK 325 M during 2014-2018, mainly in production equipment. The investment for this year is within the previously announced framework for capital expenditures for 2014. It is estimated that production will be able to gradually commence as of the second half of 2015.

"We are already a leading global supplier of premium tires for agricultural machines and we now intend to consolidate this position through production in North America, with proximity to both existing global customers as well as a potential expanded customer base. We are building up specialty production of agricultural tires in a modern facility in a prime location, and we are also capitalizing on existing partnership agreements with major original equipment manufacturers and distributors, facilitating the transfer of technology from one part of the world to another,” concludes Maurizio Vischi.

Trelleborg Wheel Systems currently carries out production of agricultural tires in Europe and Asia. The business area also develops, produces and distributes tires for forklift trucks and other material handling vehicles.

Trelleborg is a world leader in engineered polymer solutions that seal, damp and protect critical applications in demanding environments. Its innovative engineered solutions accelerate performance for customers in a sustainable way. The Trelleborg Group has annual sales of about SEK 21 billion in over 40 countries. The Group comprises five business areas: Trelleborg Coated Systems, Trelleborg Industrial Solutions, Trelleborg Offshore & Construction, Trelleborg Sealing Solutions and Trelleborg Wheel Systems. In addition, Trelleborg owns 50 percent of TrelleborgVibracoustic, a global leader within antivibration solutions for light and heavy vehicles, with annual sales of approximately SEK 15 billion in about 20 countries. The Trelleborg share has been listed on the Stock Exchange since 1964 and is listed on NASDAQ OMX Stockholm, Large Cap. www.trelleborg.com

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