VBG GROUP concentrates its production of trailer couplings to the factory in Vänersborg

The engineering Group VBG GROUP has decided to move its production of the
RINGFEDER trailer couplings from the factory in Krefeld to the production facility
in Vänersborg. As a consequence of the move VBG GROUP will be charged a re-
structuring cost, estimated to approximately MSEK 40, which principally will be
accounted for during fourth quarter 2008.

It is a long-term action and a consequence of the Group´s activities to carry out structural rationalizations but also a necessary action to adapt the operations to the business cycle. To concentrate production to one factory will lead to lower fixed costs and increased efficiency, which will strengthen the competiveness of VBG GROUP.

” We act now to make the production of trailer couplings more effective and to adjust the capacity to a general declining market. The measure taken will increase our flexibility and strengthen our position on the market”, Anders Birgersson, President and CEO of VBG GROUP AB declares.

The move which will affect 65-70 employees in VBG GROUP TRUCK EQUIPMENT GMBH in Krefeld
and is expected to be concluded during fourth quarter 2009.

The subsidiary VBG GROUP TRUCK EQUIPMENT in Krefeld will also in the future have the business responsibility for the brands RINGFEDER och EDSCHA TRAILER SYSTEMS comprising product design, marketing, sale and logistics handling.

Negotiations with the unions will start immediately.

”We choose to implement this measure during 2009 to make VBG GROUP well prepared to deliver
our complete coupling program from the factory in Vänersborg when the market hopefully will recover”,
Anders Birgersson says.

Vänersborg,   19 November 2008
VBG GROUP AB (publ)

For more information:   

President and CEO Anders Birgersson, +46 521 277767 / +46 702 277778