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Trelleborg acquires business enabling further expansion in offshore oil and gas in Brazil

Trelleborg acquires business enabling further expansion in offshore oil
and gas in Brazil
 
Through its Trelleborg Engineered Systems business area, Trelleborg has
signed an agreement to acquire a business in the offshore oil and gas
industry in Brazil from a subsidiary of Veyance Technologies Inc. The
business focuses on specially designed oil hoses for surface and
deep-sea applications for the strongly growing offshore oil and gas
extraction industry in Brazil.
 
“This represents a step in our quest to strengthen our presence in
Brazil in the offshore oil/gas industry,” says Lennart Johansson,
President of the Trelleborg Engineered Systems business area. “The
acquired operation complements our current technology in oil hoses and
is thus an excellent addition to our product portfolio, globally as well
as in Brazil. Our customers are moving more and more of their production
to Brazil and it is crucial to ensure that we have manufacturing close
to their units.”
 
The plant is located in Santana de Parnaiba, close to São Paulo.
Trelleborg will take over the lease on the facility, which is 15,000 m2,
acquire the existing equipment and assume responsibility for the some
100 employees. The seller is Veyance Technologies do Brasil Produtos de
Engenharia Ltda.
 
The acquisition is expected to be finalized in the first quarter of
2011, and will be followed by investments in supplementary production
equipment. It is anticipated that production can commence gradually as
of the second half of 2011. The purchase consideration is approximately
SEK 40 M and Trelleborg will initially invest approximately SEK 25 M
during 2011. A successive positive earnings effect is forecast from the
second half of 2012.
 
Trelleborg has reported significant sales in the oil/gas industry in
Brazil for a long time now and, in November 2010 the Group announced an
investment in a new facility in Macaé, north of Rio de Janeiro, for the
manufacture of such items as subsea buoys for deep-sea applications. In
recent years, large deposits have been discovered off the coast of
Brazil and, by 2014, Brazil is forecast to be the largest market in the
world for the products and solutions that Trelleborg offers.
 
The Trelleborg Group currently has 1,000 employees in Brazil and is
established in technology development, production and sales in the
country.
 
For further information, please contact:
Media: SVP Corporate Communications Viktoria Bergman, 46 (0)410 67094,
46 (0)708 475733 This email address is being protected from spambots. You need JavaScript enabled to view it.
 
Investors/analysts: Vice President IR Conny Torstensson, 46 (0)410
67070, 46 (0)734 087070, This email address is being protected from spambots. You need JavaScript enabled to view it.
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