Trelleborg will be investing €2 million to bring new production lines to Malta as a result of an agreement reached between the government and the company.

As a result of this agreement, the company, which produces O rings for the car industry, will keep on its books 150 employees who were going to be made redundant and employees will return to a five-day week in the next 17 weeks.

Addressing a news conference this morning, Finance Minister Tonio Fenech said that through the agreement, the company would also have the capacity to employ another 85 people by the end of 2010.

He said that the companies’ employees would be returning to a five day week with the fifth day being reserved for retraining the employees for the new specialised lines, being brought to Malta from competitor countries.

The government, Mr Fenech said, is assisting Trelleborg with the financing of part of the training being provided and by giving tax credits for new investment. He did not quantify what this was to cost.

The company currently employs 450 people and has been seeing deteriorating order books because of the current global situation. Its major export markets are Germany and the US.

A similar agreement was reached with Methode a few days ago and discussions are underway with Stainless Steel Products, another major company whose employees are currently on a four-day week.

The news conference was also attended by Trelleborg’s managing director Martin Hignett and Malta Enterprise chairman Alan Camilleri.