STOCKHOLM, Sweden — After reviewing the production structure of its Friction Products business unit, Swedish parts maker Haldex has announced a restructuring plan for the unit.
The business unit, part of Haldex’s Commercial Vehicles Systems (CVS) division, makes lining products for disc brakes and drum brakes for the North American market. The company currently produces these products in a plant in Prattville, AL.
Under the restructuring plan, the production of lining products for drum brakes at the plant in Prattville will be discontinued and outsourced to sub-suppliers. Haldex has made agreements with a number of suppliers located in low cost countries, and said it has implemented a quality-assurance program with these suppliers to ensure that their quality will meet or exceed current standards.
CVS’s North American sales organization will continue to provide sales and technical support for friction products. Production will be relocated to sub-suppliers during the first quarter of 2008. Approximately 75 to 85 employees will be affected by the changes.
The company said various strategic alternatives are currently being evaluated for the operations that produce lining products for disc brakes, which mainly focus on the North American OEM market,
For more information about Haldex, go to: www.haldex.com.