Annual report 2011 - Trelleborg

FURTHER DEVELOPMENT OF
ANTIVIBRATION SOLUTIONS
FOR LIGHT AND
HEAVY VEHICLES
Trelleborg and Freudenberg have signed an agreement to form a 50/50 joint
venture in antivibration solutions for light and heavy vehicles. For Trelleborg,
this business arrangement generates value and represents a further step in
the company’s strategic journey.
A stronger company
in global competition
The automotive industry is continually undergoing
structural changes, and consolidations
are a natural part of evolution in the
market. The joint venture will be able to offer
the market’s best geographic coverage and
broadest product portfolio in antivibration
solutions for light and heavy vehicles. This
creates opportunities for an efficient structure
in a fragmented market.
Prioritization of growth
The joint venture enables Trelleborg to
develop other parts of the Group at the
same time as a global leader is created in
antivibration solutions, which is a growing
segment in the automotive industry. The
company generates value for Trelleborg,
customers and shareholders.
In December 2011, Trelleborg and
Freudenberg signed an agreement covering
all points of principle relating to the
formation of the joint venture. In January
2012, all ancillary and transitional arrangements
were finalized and signed.
Applications for anti-trust ap proval of the
joint venture have been submitted to the
relevant competition authorities.
The joint venture will consist of
Trelleborg Automotive’s operations in
antivibration solutions and Freudenberg’s
corresponding activities, Vibracoustic.
At year-end 2011, the combined annual
sales were approximately sek 13.4 billion.
Trelleborg Automotive’s operations
outside the antivibration area are not
affected.
Quality in products,
solutions and services
The joint venture will continue to develop
innovative solutions in collaboration with
customers, with a focus on generating value.
Trelleborg and Freudenberg’s customer and
product portfolios complement each other
well, which further strengthens the offering
to customers.
Integration for efficiency
Trelleborg’s growth and profit development
are based on attaining leading positions
in selected segments. Together with
Freudenberg, this goal can be achieved
in antivibration solutions.
Sales in 2011 for the units in Trelleborg
Automotive that will be included in the
joint venture amounted to approximately
sek 7.1 billion, with about 5,500
employees.
When approval from the relevant
competition authorities has been
obtained, the participation in the joint
venture will be recognized using the
equity method. The Group’s share of
profits in the company will subsequently
be recognized in the income statement
under the item “Share of profit or loss in
associated companies before tax” and
included in operating profit and on the
line “Tax on share of profit or loss in
associated companies,” which is recognized
as a tax expense.
TOWARD THE TRELLEBORG OF THE FUTURE
GRI: 2.9 Annual Report 2011 Trelleborg AB 5