Sweden's Trelleborg is expanding geographically by establishing its first fully-owned manufacturing operations in Russia, Vietnam, Japan and Morocco.
Credit: Trelleborg
The total investment amounts to just under SEK 300 million, allocated over a period of five years. When the facilities are fully operational in 2026, they are expected to have just over 300 employees. The purpose of the investments is to provide closer proximity to customers in growing and profitable segments.
Trelleborg is a world leader in engineered polymer solutions that seal, damp and protect critical applications in demanding environments. The Group consists of three business areas: Trelleborg Industrial Solutions, Trelleborg Sealing Solutions and Trelleborg Wheel Systems.
“Trelleborg’s success is based on our ability to combine a strongly decentralised and local organisation with the competence and financial strength of a global company. To do, this we must be close to our customers and be able to grow alongside them, and over time also develop other local customer relationships that may become global," said Peter Nilsson, President and CEO of Trelleborg Group.
"These investments to increase the Group’s geographic presence will allow more business decisions to be made close to customers, which creates competitive flexibility and an even greater market and customer awareness.”
Trelleborg Sealing Solutions will begin manufacturing sealing solutions for the large domestic Russian market in the third quarter of 2022. The production site, located in Yesipovo near Moscow, will manufacture high-performance seals primarily for the transportation equipment and aerospace market segments.
Trelleborg Sealing Solutions will also establish a production facility for sealing solutions in Vietnam, a country that many global companies have entered over the past decade. The Vietnamese plant will make engineered seals for several market segments.
In its key Japanese automotive market, Trelleborg Industrial Solutions will begin manufacturing automotive boots in Odawara, southwest of Tokyo, in the first quarter of 2022.
Investment in the new facilities is in line with the Group's expansion plans defined a few years earlier. Earlier this year, the company opened a manufacturing facility for automotive boots in Kenitra, Morocco, in response to rising demand. This was the Group’s first production facility on the African continent, and the investment established Trelleborg’s automotive boots as a genuine global operation with manufacturing on four continents.
The company is also expanding its capacity in its domestic market. In August, Trelleborg acquired premises in the city of Kalmar that the company was previously leasing. In Kalmar, Trelleborg Sealing Solutions develops and manufactures noise and vibration-damping solutions for light vehicles, primarily brake shims.
“The operation in Kalmar is of global importance to the Trelleborg Group and we believe strongly in its continued success. Now that the opportunity has arisen to acquire the premises, we regard it as part of our investment in the future, to further develop the operation and strengthen our presence in Kalmar,” said Fredrik Nilsson.
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