Benteler Automotive Announces Joint Venture in China

SHANGHAI, China and PADERBORN, Germany, Jan. 15 -- The Shanghai Huizhong Automotive Co. Ltd. and Benteler Automotive of Paderborn, Germany, announced plans to create a new joint venture company called Shanghai Benteler Huizhong Co. Ltd., which will be located in Shanghai, China. The joint venture plans to begin production in August 2002, and has received approval by the Chinese Government.

The new company will focus on the production of chassis components including cross-members, sub-frames, and control arms. The new facility will produce parts for several OEM customers in the region and employ approximately 200 associates.

``The formation of Shanghai Benteler Huizhong is an important step for Benteler Automotive as we continue to expand our global operations. It positions us to meet the requests from our customers to produce locally,'' said Nick Ghoussaini, CEO of Benteler Automotive.

``Our partner Shanghai Huizhong is a large and well respected manufacturer in China. This new joint venture allows us to supply to one of the fastest growing markets in the automotive industry today,'' stated Friedhelm Gottwick, vice president of Benteler Automotive-Asia Pacific region. ``We insure our customers that we can deliver the same high quality standard anywhere in the world.''

Benteler Automotive is a global supplier of high-quality products and solutions for optimization of vehicle ride comfort, passenger protection, safety, and emission reduction. Its customers include all major vehicle manufacturers. With global headquarters based in Paderborn, Germany, Benteler Automotive employs more than 11,000 associates worldwide at 40 locations. The automotive business is part of Benteler AG, based in Paderborn. The Benteler group covers 4 divisions: Steel / Tube, Mechanical Engineering, Trade and Automotive. Altogether, the privately owned company is among the 100 largest companies in Germany, with over 17,000 employees and turnover of $2.7 billion dollars in the year 2000. Benteler's North American executive offices are located in Auburn Hills, Michigan.