STOCKHOLM, Sweden — Haldex has signed an agreement to divest its disc brake friction material business, as a final step in the restructuring of Friction Products, a business unit within Haldex’s Commercial Vehicle Systems (CVS) division.
Friction Products is responsible for the manufacture and sale of pads for disc brakes and linings for drum brakes in North America. 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 its service center network.
As a final step of the restructuring, Haldex has 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, Inc. 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 $17 million in 2007. The parties expect the transaction to close on July 31.
Approximately 80 employees will be affected by the changes.
For more information about Haldex, go to: www.haldex.com.
