Trelleborg sells Czech compounding operation to Hexpol
Trelleborg has sold its compounding operation in Lesina, Czech Republic to Hexpol, a fellow Swedish compounding group.
Most of the Czech compounding operation’s sales are to external customers, with a minor share to a small number of Trelleborg facilities in Europe.
Peter Nilsson, President and CEO of Trelleborg, said: “Our focus is on the development and production of engineered polymer-based solutions. The task of our compounding operation is to supply Group’s facilities with high quality compounds that are important components of our end products. The Czech operation has a large external customer base. This means that it also sells compounds to our direct and indirect competitors, which does not make the business sustainable for us in the long term. Therefore, it will develop better with another owner.”
The divested operation, which had annual external sales of approximately SEK 300 million (£28.6 million) in 2016 was deconsolidated on March 31st, 2017. Trelleborg expects to make SEK 450 million (£40 million) after tax.