Regulatory News:

Concentric AB (STO:COIC) has opened a new plant in Hof, Bavaria,
consolidating all its European hydraulics manufacturing operations into
a single site.

The inauguration of the new 9,000 m² Hof facility is the culmination of
a SEK36 million (approximately €4.2 million) restructuring programme to
create one centre of excellence for Concentric’s hydraulics technology
and manufacturing in Europe. It involves the closure of the existing
older plants in Hof and Skånes Fagerhult, Sweden and the gradual
transfer of all production lines into the new facility during 2013.

The Swedish plant has now completed the transfer of the business and
ceased all production, in line with the previously announced
restructuring programme, and deliveries of Concentric power packs from
the new Hof plant are already under way. Other production lines
including the company’s range of hydraulic pumps, motors and flow
dividers will be transferred in a staged programme through the remainder
of 2013 and it is anticipated that the old Hof plant will finally close
at the end of the year after a working life of some 125 years.

Like Concentric’s American centre of excellence in Rockford, Illinois,
the new Hof plant is designed to create a “best in class” hydraulics
facility in the region. This announcement completes the reorganisation
of the company’s hydraulics business (formerly known as Haldex
Hydraulics Division) which became part of Concentric AB when it was
formed in June 2011, following the break-up of the Haldex Group.

The project is being run according to the Concentric Business Excellence
model and so lean manufacturing principles have been applied across the
multiple manufacturing channels. The new plant in Hof represents
approximately 30% more space than that of the two old plants combined,
providing ample capacity for future growth. The consolidation within a
single plant will deliver significant economies of scale as well as
offering customers a single point of contact for customer service,
applications support, design engineering, quality and logistics.

Wim Goossens, Concentric’s Senior Vice President of Europe and Rest of
World (RoW), commented: “Consolidating our European hydraulics business
not only delivers synergies and enhanced co-ordination but also
maximizes the great tradition of engineering excellence we enjoy in Hof.
Concentric AB believes strongly in the growth potential of the hydraulic
business and the new facility is evidence of our growing strength in the
market.”

Concentric’s range of Haldex branded hydraulic pumps, motors, power
packs and flow dividers are specified by leading OEMs for a wide range
of applications including lift trucks, aerial work platforms,
agricultural equipment, transmissions, mining, construction and
road-building machinery. Applications include cooling fans, axle cooling
systems, rotary drives for agricultural equipment electro-hydraulic
lifts, transmission clutch actuation and lubrication, auxiliary brake
and steering systems.

This information was brought to you by Cision http://news.cision.com

Contacts

David Bessant
CFO
+44 121 445 6545

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