Tower Automotive/Metalsa Add Heat-Treating Operations To Serve Class 6, 7 & 8 Vehicle Market

20 April 1998
Tower Automotive/Metalsa Add Heat-Treating Operations To Serve Class 6, 7 & 8 Vehicle Market

    DETROIT, April 20 -- Tower Automotive, Inc. and
its joint venture partner Metalsa, the largest automotive vehicle frame and
structures supplier in Mexico, have announced the addition of heat-treating
and die-quenching operations at Metalsa's Apodaca plant in Monterrey, Mexico.
This addition, along with a planned doubling of their polyester powder coating
line, represents an investment of about $14 million and is expected to be in
operation in early 1999.
    Heat-treating and die-quenching are the industry-standard methods of
processing truck frame side members, typically "C" sections, for additional
strength and integrity using high-temperature and pressure manufacturing
techniques.
    With the addition of these capabilities, Metalsa, a member of the Proeza
group, and Tower Automotive will be in a better position to serve their
current customer base in the medium and heavy vehicle market.  Customers
include Ford, Navistar, PACCAR, Dina, Freightliner/Mercedes-Benz and others.
    According to Metalsa CEO Antonio Zarate, "With the Class 8 market over 50
percent stronger this year in Mexico, and the 230,000 projected 1998 truck
sales in the North American market, there is simply not enough heat-treating
capacity in the industry."
    "Over the next several months," Zarate adds, "we will be working with
Tower Automotive and our entire customer base to provide this needed
capacity."
    Metalsa's operations are headquartered in Monterrey, Mexico, with
manufacturing facilities in Monterrey and San Luis Potosi, Mexico.
    Tower Automotive, Inc. produces a broad range of stamped and welded
assemblies for automotive vehicle body structures and suspension systems,
serving customers like Ford, Chrysler, General Motors, Honda, Toyota, Nissan,
Mazda and Fiat.  Tower Automotive has its operating headquarters in Grand
Rapids, Mich., and a corporate office in Minneapolis, Minn.

SOURCE  Tower Automotive, Inc.