STOCKHOLM, Sweden — As a final step of the restructuring of Friction Products, a business unit within its Commercial Vehicle Systems (CVS) division, Haldex has signed an agreement to divest the disc brake friction material business.
At the end of 2007, Haldex announced that a review was to be conducted of the production structure of Friction Products.
Friction Products is responsible for the manufacture and sale of pads for disc brakes and linings for drum brakes in the North American market. Haldex has produced these products in a plant in Prattville, Ala.
The initial step in the restructuring plan was to discontinue the production of drum brake linings at the plant in Prattville, which was completed during the first quarter of 2008. Haldex outsourced drum brake lining manufacturing to a number of high quality global suppliers. CVS North America will continue to sell and give technical support for drum brake friction products through their service centre network.
As a final step of the restructuring, Haldex entered into an agreement to sell the disc brake friction material business to a Brazilian company, Fras-Le S.A. through its North American subsidiary, Fras-Le North America, on June 30. The transaction includes all tangible and intangible assets of the disc brake friction material business, excluding the land and building. The revenue of the business was approximately 100 MSEK in 2007. The parties expect the transaction to close on July 31.
Approximately 80 employees will be affected by the changes.
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