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Tower Automotive, Inc. Announces Partnership Arrangement in Mexico With Metalsa

22 July 1997

Tower Automotive, Inc. Announces Partnership Arrangement in Mexico With Metalsa

    MINNEAPOLIS, July 22 -- Tower Automotive, Inc. and Promotora
de Empresas Zano, S.A. de C.V. (Proeza) today announced that they have entered
into an agreement to become partners in Metalsa, the largest vehicle frame and
structures supplier in Mexico.  From an operational standpoint, the
partnership arrangement is effective immediately.  Tower will ultimately
obtain 40 percent interest in Metalsa, pending approvals on governmental
and other matters.
    Metalsa's operations are headquartered in Monterrey, Mexico, and consist
of manufacturing facilities in Monterrey and San Luis Potosi, Mexico.
Customers include Chrysler, General Motors, Ford, Nissan and Mercedes Benz.
    Tower Automotive's president and chief executive officer, Dugald K.
Campbell, said, "We are very excited about our partnership with Metalsa.
Metalsa is far and away the leader in Mexico in vehicle frames and structures
and has outstanding facilities and personnel.  Together, we will leverage
Tower Automotive's design and manufacturing technology with Metalsa's
production facilities to be the supplier of choice in Mexico.  Collectively,
we will also bring in-depth regional knowledge and unmatched ability to serve
customers in other high growth areas of Latin America."
    S.A. Johnson, chairman of Tower Automotive, added, "An important
consideration for both parties was the exceptional cultural fit between Tower
and Metalsa.  This partnership will be an essential element in our ability to
exceed our customers' expectations and achieve our aggressive growth
objectives."
    Enrique Zambrano, Proeza's director general, stated, "At Proeza, we are
all looking forward to working with our new partner.  The combination of
Metalsa and Tower Automotive will create an even more powerful force in the
structural components market, combining our current market position and
expertise with Tower's technology, worldwide positioning and client
relationships.  Together, we see new opportunities not only in Mexico, but
throughout Latin America."
    Tower Automotive, Inc. produces a broad range of stamped and welded
assemblies for vehicle body structures and suspension systems for the
automotive manufacturers, including Ford, Chrysler, General Motors, Honda,
Toyota, Nissan, Mazda and Fiat.  Products include body structural assemblies
such as pillars and package trays, control arms, suspension links, engine
cradles and full frame assemblies.  The Company has its operating headquarters
in Grand Rapids, Mich., and a corporate office in Minneapolis, Minn.

SOURCE  Tower Automotive, Inc.