Trelleborg launches production in Nizhny Novgorod in Russia

The company expects the Russian automotive market to recover from the drop in 2008/2009 and to increase strongly. The company's assessment is that about 1.5 million cars per year will be produced locally in the next few years.

The Russian government has also presented proposals for state investments in the domestic light vehicle industry of USD 21 billion until 2020, which, if implemented, further strengthens the company's confidence in the Russian automotive industry, says Trelleborg.

The largest increase is expected to come from direct foreign investments in the country. Generally, more high-tech solutions will apply in Russian auto production, a trend that is very compatible with Trelleborg's customer offering, says the company.

Trelleborg has been active on the Russian market for some time and has now started fully-owned production. The first serial deliveries will be made in mid-2010 and the goal is to reach sales of at least
SEK 150 - 200 million within a few years, according to the company.

In 2002, Ford was the first of its customers to commence proprietary production in Russia. Other global customers have followed this trend, says Trelleborg.

In August 2009, Trelleborg Automotive established a wholly-owned subsidiary in Russia. The production unit is located in Nizhny Novgorod, one of many centers for car production in the country. The largest car producers in Russia are: Renault-Nissan/Avto VAZ, Hyundai, General Motors, Volkswagen, GAZ and Ford.

Trelleborg Automotive employed approximately 7,900 people at year-end 2009 and had sales during 2009 of approximately SEK 8,400 million.