Haldex Set to Streamline Production in Europe

STOCKHOLM, Oct. 22, 2019 /PRNewswire/ -- Haldex will streamline their production in Europe through concentrating the production of EBS and air suspension products to Hungary. This entails that the factory in Heidelberg, Germany will be shut down.

Haldex's European region has not managed to increase profitability to a level that meets the expectations. The expected economic downturn and the cost level in Germany has resulted in the decision to move the production. Through co-locating the production in Heidelberg with the production in Szentlörincskáta in Hungary, economies of scale can be reached whereas the production costs decrease.

In total, 100 people are affected by the shutdown. Out of these, 17 employees will remain at Haldex since they possess regional and global positions located in Germany. The notices will be distributed successively throughout 2020.

Negotiations with the trade union association was initiated today and are expected to be completed in 2019. The costs of the move are difficult to predict as the levels of compensation are part of the negotiations that have just been initiated. When the negotiations are completed, Haldex will announce the estimated costs. The costs will affect the financial result as a non-recurring cost, most probably in the fourth quarter of 2019. The move is expected to be completed during the first half of 2020.

Earlier in October, Haldex announced a similar co-location, moving production from North America to Mexico. Haldex aims at reaching an operating margin of ten percent by 2022, excluding investments in new technology. With these changes in production structure, the savings are estimated to a total of 75 million SEK annually, after they have been fully implemented.

Haldex AB (publ) is required to publish the above information under the EU Market Abuse Regulation. The information was submitted for publication by the Haldex media contact stated in the release on October 22, 2019 at 13.15 CEST.

This document is essentially a translation of Swedish language original thereof. In the event of any discrepancies between this translation and the original Swedish document the latter shall be deemed correct.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/haldex/r/haldex-set-to-streamline-production-in-europe,c2938251

The following files are available for download:

CONTACT:

For further information visit http://corporate.haldex.com or contact:

Helene Svahn, President & CEO, +46 418 476000
Catharina Paulcén, SVP Corporate Communications, [email protected] or +46 418 476157

SOURCE Haldex