Haldex Streamlines the Manufacturing of Brake Adjusters Move of Production from US to Mexico

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Oct 08, 2019, 16:27 ET

STOCKHOLM, Oct. 8, 2019 /PRNewswire/ -- Haldex will continue to streamline the production of brake adjusters by moving the production from the United States to Mexico. The process began in 2018 when machining of brake adjusters in the US was moved to India. In a final step, the assembly is now being moved from the plant in Blue Springs (Missouri), USA to Mexico. Brake adjusters are Haldex's largest product and they will from now on be manufactured in China, India, Hungary, Brazil and Mexico.

By co-locating the production of brake adjusters withthe production in Mexico, Haldex's largest production facility globally, and thereby producing more products in one facility, economies of scale are achieved. The manufacturing cost in Mexico is also significantly lower than the cost in USA. The cost saving is estimated at SEK 25 million on an annual basis, once the move is fully completed. A total of 154 employees are affected, of which a few will be offered new positions within Haldex's US operations. The move will start immediately and will be completed during the fourth quarter of 2020.

During the fourth quarter of 2019, earnings will be impacted with SEK 27 million as one-off costs related to the change in production.

Haldex has the financial target of reaching ten percent operating margin in 2022, excluding investments in new technology. During the second quarter Haldex announced closure of two of its US based Friction centers, resulting in SEK 6,5 million in annual savings and SEK 5 million in one-off costs.

CONTACT:

For further information visit http://corporate.haldex.com or contact:

Helene Svahn, President & CEO, +46 418 476000
Catharina Paulcén, SVP Corporate Communications, [email protected] or +46 418-476157

Haldex AB (publ) is required to publish the above information under the EU Market Abuse Regulation. The information was submitted for publication by the Haldex media contact stated in the release on October 8, 2019 at 20.30 CEST.

This document is essentially a translation of Swedish language original thereof. In the event of any discrepancies between this translation and the original Swedish document the latter shall be deemed correct.

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SOURCE Haldex