The Swedish engineering group Trelleborg is expanding geographically by establishing manufacturing operations in four countries including Vietnam, Japan, Russia, and Morocco.
The new production facilities will be the Group’s first fully owned production facilities in these countries and the total investment amounts to just under SEK 300 million, allocated over five years, according to this company statement.
The purpose of the investments is to provide closer proximity to customers in growing and profitable segments and when the facilities are fully operational in 2026, they are expected to have just over 300 employees.
Commenting on the Groups expansion plan, Peter Nilsson, President, and CEO of Trelleborg Group says, “Trelleborg’s success is based on our ability to combine a strongly decentralized and local organization 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. 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 and will also establish production of sealing solutions in Vietnam, a country that many global companies have entered over the past decade. The Group sees a need for its own production site in the country for engineered seals for several market segments and is currently exploring different alternatives.
In the key Japanese automotive market, Trelleborg Industrial Solutions will begin manufacturing automotive boots in Odawara, southwest of Tokyo, in the first quarter of 2022. Automotive boots comprise a dynamic sealing system, manufactured from thermoplastic elastomers, which seal vehicle drive shafts and prevent ingress of contaminants such as salt, water, or particles. For many years, Trelleborg has operated sales offices in Japan for sealing and marine solutions. Trelleborg has noted a highly favorable sales trend for its automotive boots’ operations over a long period.
With the Groups first production facility on the African continent, automotive boots manufacturing began in Kenitra, Morocco, in the spring of 2021.