Shanghai Behr Thermal Systems Opens New Shanghai Plant

TROY, Mich., Dec. 7, 2005 -- Shanghai Behr Thermal Systems (SBTS) today celebrated the opening of its new plant in Jinqiao, Shanghai, a year after the company held its official groundbreaking ceremony.

SBTS, a partnership between Behr GmbH and the Shanghai Sanden Behr Automotive Air Conditioning Company Ltd., focuses on the development and production of HVAC modules and engine cooling components for automobiles.

One of the most advanced facilities in China for HVAC module and engine- cooling-components testing, the new plant incorporates an HVAC calorimeter and a radiator wind tunnel. The factory houses a 300,000-square-foot production hall, which includes a Nocolok furnace that can produce 2.1 million brazed heat exchangers per year, a tool shop, an energy building and offices. The new plant has sufficient space to enable SBTS to double its engineering staff from the 50 currently employed to 100 in the future.

"Today we are celebrating far more than a plant opening," said Behr Group CEO Dr. Markus Flik. "We are celebrating a strong partnership and a joint commitment to China's automotive market. We chose this site, not only for logistical and economic reasons, but also because we fully expect it to become another of Shanghai's successful, advanced business and industrial centers. We are also close to many of our customers, and we sincerely hope that our proximity will further these relationships."

The company's current product portfolio covers mechanically fitted products such as radiators and heater cores, brazed products including aluminium-brazed radiators, charge air coolers, oil coolers, condensers, evaporators and heater cores, and cooling modules, HVAC units, plastic parts, electric/electronic parts, blower units and control panels.

"Our new plant, which incorporates many key elements of the Behr production system, stands as a tribute to cooperation, teamwork and a shared sense of purpose," said Dr. Knut Haarscheidt, general manager of SBTS. "It is not easy to build a plant and, at the same time, grow a business in a market as dynamic as the China market, but together we have made good progress. I would like to say a heartfelt 'thank you' to all concerned."

Behr's goal is to generate approximately 10 percent of its global sales in the Asia-Pacific region by the end of 2010, with China as a key contributor. The new SBTS plant with equipment represents a total investment of about $37 million and the joint venture expects to generate revenues of approximately $87 million in 2-to-3 years.

Behr's products can be found in the world's most famous and prestigious automotive brands including the Audi A8, BMW 7 Series, Chrysler 300, Dodge Durango, VW Golf and several GM products. Luxury carmakers, such as Maybach and Rolls Royce, use Behr HVAC units as well.

Parent Behr GmbH & Co. KG, Stuttgart, is a systems partner for the international automobile industry. A specialist for automotive air conditioning and engine cooling systems, the Behr Group is one of the world's leading manufacturers and suppliers of original equipment for passenger and commercial vehicles. Group sales in the 2004 business year came to around $3.9 billion. Currently Behr employs 18,000 staff at 10 development and 30 production sites in Europe, North and South America, South Africa and Asia.

Headquartered in Troy, Mich., Behr America has nearly 3,000 employees at facilities in Troy, Mich.; Dayton, Ohio; Charleston, S.C., and Fort Worth, Texas.

Additional information is available on the Internet at http://www.behrgroup.com/ .