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Mannesmann Sachs Acquires Shock Absorber Manufacturer in Mexico

3 December 1997

Mannesmann Sachs Acquires Shock Absorber Manufacturer in Mexico

    DUSSELDORF, Germany, Dec. 3 -- Effective from December 1,
1997, Mannesmann Sachs AG, one of the major German suppliers to the automobile
industry, has acquired the leading Mexican shock absorber manufacturer,
Aralmex, S.A. de C.V., with headquarters in Guadalajara.  Mannesmann Sachs is
purchasing 100% of the shares from the previous owners, the Mexican industrial
group Hermes S.A. de C.V. and General Motors Corp.  In 1997, with
approximately 1,500 employees, Aralmex will have produced six million shock
absorbers and achieved a turnover of US$ 80 million.  It supplies parts to
automobile manufacturers' plants in Mexico (General Motors, Nissan, VW) and to
the replacement market.  Aralmex is the Mexican market leader in both of these
segments.  A significant part of the Aralmex production has been already made
for the export markets.  In the future this part will increase because of the
strong international Sachs-Organization.
    With this acquisition, Sachs rounds off its range of products for the
North American market.  In addition to the suspension struts, single-tube
shock absorber, ride-height control systems and variable damping systems for
passenger cars produced in Florence, Kentucky (USA), the company will now be
offering twin-tube shock absorbers, shock absorbers for commercial vehicles
and additional suspension struts from the Aralmex factory.  This puts Sachs in
a position to offer shock-absorber solutions for every segment of
series-production business and for the replacement market in the NAFTA trade
zone.
    The acquisition is part of Sachs' strategy to supply customers in Europe
and in other important production regions from its own production facilities.
On the American continent, the Sachs Group now manufactures shock absorbers,
clutches, gas-filled springs and bonded rubber-metal vibration damping
components at eight locations within the NAFTA trade zone (North and Central
America) and at five locations in the MERCOSUL trade zone (South America).

SOURCE  Mannesmann Sachs AG