A.G. Simpson Forms Brazilian Joint Venture
11 September 1997
A.G. Simpson Forms Brazilian Joint Venture
Canadian Federal Minister of Trade, Ambassador Attend Signing Ceremony
SCARBOROUGH, Ontario, Sept. 11 -- Today in Belo Horizonte,
Brazil, A.G. Simpson Automotive Inc., the Scarborough based automotive parts
supplier, has entered into a joint venture agreement with Usiminas and
Brasinca-Minas, two Brazilian firms. On hand for the signing ceremony were
International Trade Minister Sergio Marchi and Canadian Ambassador to Brazil
Nancy Stiles. The venture will supply metal stampings and sub-assemblies to
the new General Motors manufacturing complex to be built in Gravatai, in the
southern Brazilian state of Rio Grande do Sul. The joint venture will invest
$130 million in plant, equipment and tooling to manufacture a global, entry-
level vehicle slated for early 1999 production. The joint venture will be
known as A.G. Simpson - Brasinca-Minas S.A.
"This facility is an important step toward providing global support to our
customers. Participation in this program clearly establishes us as a global
supplier to the automotive industry," said Mr. Robert Simpson, Chairman and
Chief Executive Officer of A.G. Simpson Automotive Inc.
Brasinca-Minas is a Brazilian automotive stampings manufacturer and
Usiminas is one of the largest steel producers in Brazil. The strategic
alliance of the three companies integrates the production supply chain from
raw material to finished automotive parts modules. It brings together high
volume stamping technology from A.G. Simpson, state of the art cold-rolled
steel production methods from Usiminas and domestic industry expertise from
Brasinca-Minas.
Mr. David Arndt, President of A.G. Simpson's Metal Forming Group adds, "We
are realizing our primary objective of supplying stamped, structural assembly
modules on a major global scale."
A.G. Simpson will hold 50% of the venture, Usiminas will hold 20% and
Brasinca-Minas will hold 30%.
SOURCE A.G. Simpson Automotive Inc.