Nordic Business Report-November 27, 2006-Trelleborg AB plans to cut 700 jobs within Automotive (C)1994-2006 M2 COMMUNICATIONS LTD http://www.m2.com Swedish industrial group Trelleborg AB announced on Monday (27 November) an action programme for its business area Automotive. The first phase of the action programme is expected to reduce Trelleborgs European headcount by some 700, and to cost approximately SEK875m over the next two years. It involves relocating production from an AVS plant in Trowbridge in the United Kingdom to Romania and Spain. The closure of the Trowbridge plant will affect some 150 employees. Additional job cuts affecting up to 250 employees will also take place at Trelleborgs Fluid & Acoustic unit in Mannheim, Germany. As part of the action programme Trelleborg also plans to transfer resources from elsewhere in Western Europe to Eastern Europe. Trelleborg is also considering the divestment, restructuring or closure of two undisclosed small plants in Europe. "We are continuing our review of Automotive," said Peter Nilsson, President and CEO of Trelleborg. "Strategically, we are proceeding with a thorough analysis of our positions and the strategic measures connected with these. Regardless of our choice of approach, we must continue to implement operational measures to improve profitability," Nilsson added. Trelleborg Group, headquartered in Trelleborg in Sweden, develops and manufactures high-performance solutions that seal, damp and protect in demanding industrial environments. The group has 23,000 employees in 40 countries, and annual sales of approximately SEK24bn. Trelleborg is listed on the Nordic Exchange in Stockholm. One British pound (GBP) is worth approximately 13.49 Swedish kronor (SEK). ((Comments on this story may be sent to [email protected]))