TRELLEBORG, Sweden — Trelleborg A.B. is cutting the number of its business areas to three from five as part of a restructuring program that will target further strengthening of "already well-performing and well-positioned business areas" while highlighting areas where profitability is weak.
Under the program announced Dec. 4, Trelleborg will discontinue its Trelleborg Coated Systems and Trelleborg Offshore & Construction business areas and create a "businesses under development" segment that will oversee operations with low profitability.
Trelleborg Wheel Systems, specialized in tires for off-highway vehicles, will continue to operate under its current structure, Trelleborg said, with the exception of the unit's Czech Republic-based bicycle tire business, which will be reassigned to the businesses under development segment.
The revamp will affect businesses with collective annual sales of approximately $410 million, Trelleborg said, or roughly 11% of the firm's overall annual sales.
"We are now putting a stronger focus on our strategically well-positioned businesses," Trelleborg President and CEO Peter Nilsson said. "This will involve continued development and investments in organic growth and various types of bolt-on acquisitions, which in different ways can complement and strengthen our positions in selected segments.