Behr America Plans Major North American Expansion

TROY, Mich., April 3 -- Behr America plans to nearly double the size of its North American headquarters in Troy, add new business at its renovated Dayton Thermal Products plant in Ohio and build a major new production facility in Mexico.

"We are laying the foundation for further growth in North America," says Frank Mueller, president and CEO of Behr America. "Our continuing expansion here demonstrates a clear commitment to our customers in North America."

In Troy, Behr is adding an $8.5-million, three-story, 69,000-square-foot office building, increasing the overall size of its four-year-old North American headquarters and technical center by more than 75 percent. It will be the second major expansion at the Troy location in the past three years.

Constructed on a recently acquired 2.3-acre site adjoining Behr America's current headquarters campus, the new building will provide space for nearly 270 Behr employees now working in rented facilities in the area and will allow for further engineering and program-management job growth over the next several years. The new facility is expected to open early next year.

"We've outgrown our Troy campus in less than four years," notes Mueller. "Our Michigan-based headquarters-and-technical staff has grown from less than 100 employees in 2002 to nearly 550 today. We expect even further growth to around 600 people within the next several years."

Behr's technical center in Troy is one of the world's most advanced testing facilities for vehicle thermal management. It includes a $15-million, high-technology climatic wind tunnel opened in 2004 that enables Behr researchers and product-development engineers to test air-conditioning and engine-cooling systems in all categories of cars and trucks with extreme precision under any climate or road condition. The facility also is used by other suppliers and automakers.

New Programs at Behr Dayton Thermal Products

In Ohio, Behr Dayton Thermal Products is increasing its production capacity. The facility recently began manufacturing rear air-conditioning systems for several new General Motors products. Acquired in 2002 from DaimlerChrysler, Dayton is Behr's largest production plant in North America.

"This year we are launching our first GM business in Dayton," notes Dean Arneson, Behr vice president and Dayton plant manager. "We have two production lines already running with more lines scheduled to open before the end of the year."

Behr Plans Manufacturing Plant in Mexico

In northeast Mexico, Behr soon will break ground for a new production plant. Two sites currently are under consideration. The plant will produce engine-cooling modules and components and will provide additional capacity for Behr's business growth beyond 2007.

"It should be noted that our new Mexican plant will be built near customer assembly plants in Mexico," says Mueller. "It will not impact operations at other Behr America plants in North America."

The facility in Mexico will be built in two stages, with the first 130,000-square-foot building scheduled for completion by the end of 2006 with an initial investment of $13 million. When phase one is completed, the plant is expected to employ 250 people with estimated annual sales of $110 million.

The Behr Group's customer base includes all major car and light-truck manufacturers, as well as major heavy-truck manufacturers.

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.

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 2005 business year were approximately $3.8 billion. Currently Behr employs more than 18,000 people at 10 development and 30 production sites in Europe, North and South America, Asia and South Africa.

For additional company information, please visit http://www.behrgroup.com/ .