News | Sunday, 08 March 2009

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Trelleborg receives undisclosed government aid to stay

Trelleborg announced a €2 million investment plan yesterday and the return to a five-day week for its staff following undisclosed funds granted by the government.
The ‘O’ ring manufacturer’s managing director Martin Hignett said yesterday that the company “is here to stay” now that it received state support.
Government aid acted as an incentive for Trelleborg to invest, he said, through which an increase in orders and a boost in production is expected.
Trelleborg will be increase its workforce by a further 85 on top of its current 450 - whom Trelleborg plans to retain.
In October last year, the company informed the General Workers’ Union that it would be placing its entire workforce on a four-day week due to a drastic decline in its order book.
To justify government’s intervention, Finance Minister Tonio Fenech explained that Trelleborg was considering the option of either downsizing its staff by 150, or schedule its full workforce on a three-day week. This would have placed doubt on the firm’s future in Malta, Fenech said.
Although it has been announced that government will be helping out the firm in the form of tax credits, the amount such aid will cost has not been disclosed.

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