This'll please US president Trump: Haldex said it would continue to "streamline" production of brake adjusters by moving location from the United States to Mexico.
The process began in 2018 when machining of brake adjusters in the US was moved to India. In a final step, the assembly is now being moved from the plant in Blue Springs Missouri to Mexico.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Brake adjusters are Haldex's largest product and they will from now on be manufactured in China, India, Hungary, Brazil and Mexico, the supplier said.
Haldex justified the move by saying co-locating production of brake adjusters in Mexico, its largest factory globally, and thereby producing more products in one facility, achieves economies of scale.
"The manufacturing cost in Mexico is also significantly lower than the cost in US," the supplier said.
"The cost saving is estimated at SEK25m on an annual basis, once the move is fully completed."
Some 154 employees are affected, of which a few will be offered new positions within Haldex's US operations. The move will start immediately and will be completed during the fourth quarter of 2020.
During the fourth quarter of 2019, earnings will be impacted with SEK27m as one-off costs related to the change in production.
Haldex has targeted reaching 10% operating margin in 2022, excluding investments in new technology.
During the second quarter, it announced closure of two of its US based friction centres, resulting in SEK6.5m in annual savings and SEK5m in one-off costs.
