TRW Automotive Subsidiary to Close Rushford, Minnesota Facility
LIVONIA, Mich., March 8 -- Kelsey-Hayes Company, a subsidiary of TRW Automotive Holdings Corp. , today announced the decision to close its Rushford, Minn. facility. This decision is based on the steadily increasing cost pressures in the controls marketplace and the need to remain competitive to secure new business growth.
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The Rushford plant has approximately 175 employees involved in the assembly of Heating Ventilation Air Conditioning (HVAC) controls and switches. It is anticipated that employees will not be impacted until the first quarter of 2007 with a final closure date targeted by the end of the third quarter in 2007.
"The pressures in the marketplace require us to make difficult decisions to remain competitive in the future," said Lynn Honsey, Vice President and General Manager of the Company's North American Body Control Systems business. "This decision is not a reflection of the Rushford operation or its workforce," Honsey explained.
Kelsey-Hayes Company is a subsidiary of TRW Automotive Holdings Corp. With sales of $12.6 billion in 2005, TRW Automotive ranks among the world's top automotive suppliers. Headquartered in Livonia, Michigan, USA, the Company, through its subsidiaries, employs approximately 63,000 people in 25 countries. TRW Automotive products include integrated vehicle control and driver assist systems, braking systems, steering systems, suspension systems, occupant safety systems (seat belts and airbags), electronics, engine components, fastening systems and aftermarket replacement parts and services. All references to "TRW Automotive," "TRW" or the "Company" in this press release refer to TRW Automotive Holdings Corp. and its subsidiaries, unless otherwise indicated. TRW Automotive news is available on the internet at http://www.trwauto.com/ .
Forward Looking Statements
This release contains statements that are not statements of historical fact, but instead are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve risks and uncertainties. Our actual results could differ materially from those contained in forward-looking statements made in this release. Such risks, uncertainties and other important factors which could cause our actual results to differ materially from those contained in our forward-looking statements are set forth in our Report on Form 10-K for the fiscal year ended December 31, 2005 (the "10-K") and include: our ability to successfully close the Rushford, Minn. facility; our ability to successfully integrate Dalphimetal's operations into the Company, which includes the retention of their customer base; possible production cuts or restructuring by our customers; efforts by our customers to consolidate their supply base; escalating pricing pressures from our customers; severe inflationary pressures impacting the market for commodities; non-performance by, or insolvency of, our suppliers and customers, which may be exacerbated by recent bankruptcies; our substantial leverage; interest rate risk arising from our variable rate indebtedness; product liability and warranty and recall claims; our dependence on our largest customers; loss of market share by domestic vehicle manufacturers; limitations on flexibility in operating our business contained in our debt agreements; fluctuations in foreign exchange rates; the possibility that our owners' interests will conflict with ours; work stoppages or other labor issues at our facilities or at the facilities of our customers or suppliers and other risks and uncertainties set forth under "Risk Factors" in the 10-K and in our other SEC filings. We do not intend or assume any obligation to update any of these forward-looking statements.
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