Trelleborg strengthens operations in Eastern Europe

12/27/05, Through its Building Systems business area, Trelleborg has signed an agreement to acquire the remaining 70 percent of Elastomer Compounding s.r.o. (ECS) of the Czech Republic from Rado of Germany. Trelleborg has owned 30 percent of ECS since 1998. ECS’s mixing unit is located in Lesina.

ECS produces rubber mixtures primarily for profile manufacturers focusing on the construction and industrial sectors. Most of ECS’s production is already delivered to the Trelleborg Group. Annual sales are approximately SEK 75 M and the unit has 40 employees.

“In pace with our expansion in Eastern Europe, we also need to secure competitive materials support,” says Peter Suter, President of the Trelleborg Building Systems business area. “This is a modern facility that strengthens Trelleborg’s competitiveness and provides the conditions for increased growth in both Eastern and Western Europe.”

The mixing unit has a production capacity of approximately 20,000 tons, which allows substantial room for growth.

Synergies will be generated in the form of shared purchasing and cost-efficient supplies to existing units, primarily in the Trelleborg Building Systems and Trelleborg Automotive business areas, and the acquisition also supports Trelleborg Automotive’s projected manufacturing plant in Romania, plans for which were recently decided.

The takeover is expected to take place on January 1, 2006.

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Trelleborg is a global industrial group whose leading positions are based on advanced polymer technology and in-depth applications know-how. We develop high-performance solutions that seal, damp and protect in demanding industrial environments. The Trelleborg Group has annual sales of approximately SEK 23 billion, with about 22,000 employees in 40 countries. Trelleborg consists of five business areas: Trelleborg Automotive, Trelleborg Wheel Systems, Trelleborg Engineered Systems, Trelleborg Building Systems and Trelleborg Sealing Solutions. The Trelleborg share has been quoted on the A list of the Stockholm Stock Exchange since 1964.

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Viktoria Bergman

Corporate Communications

Trelleborg

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