Haldex announced that it will restructure Friction Products, a business unit within the Commercial Vehicles Systems (CVS) division, discontinuing the production of lining products for drum brakes at its plant in Prattville, Alabama, and outsourcing it to sub-suppliers.
Haldex says this measure will result in cost savings and thus increased profitability for the business unit.
Haldex has concluded agreements with a number of suppliers whose production is located in low-cost countries. Haldex has implemented a quality-assurance program with these suppliers to ensure that their quality will meet or exceed the current standards. Lining products for drum brakes are mainly sold to the North American aftermarket. CVSs 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 - 85 employees will be affected by the changes.
With respect to the operations that produce lining products for disc brakes, which mainly focus on the North American OEM market, various strategic alternatives are currently being evaluated.