Chicago Rawhide Announces Mexican Expansion
24 August 1998
Chicago Rawhide Announces Mexican Expansion
ELGIN, Ill., Aug. 24 -- Chicago Rawhide today announced plans
to expand into the Mexican market by assuming full control of C/R Mexicana,
its joint venture partner based in Guadalajara, Mexico. Chicago Rawhide (CR)
previously had owned 40% of the Mexican oil seal producer since 1962. CR
plans to take full advantage of C/R Mexicana's manufacturing capabilities to
support the expansion into Mexico, as well as other opportunities CR is
pursuing throughout North and South America. Under the terms of the
agreement, Chicago Rawhide will market its full line of precision-engineered
elastomeric products to Mexican automotive, heavy duty truck, and industrial
customers. Financial terms of the transactions were not disclosed.
According to Gary Butcher, president of CR Americas, "We are very excited
about the future of Mexico and are pleased to take a major role in one of
Mexico's leading seal companies. C/R Mexicana is a highly regarded company
with outstanding growth prospects. We look forward to a bright future."
C/R Mexicana manufactures oil seals and related elastomeric products and
serves primarily Mexican automotive original equipment and aftermarket
customers. Manufacturing is concentrated in Guadalajara, Mexico's second
largest city. The company employs about 300 people and had 1997 sales of
$11 million.
Chicago Rawhide is based in Elgin, Illinois and is the North American
component of the Seals Division of SKB AB, the world's largest bearings maker,
headquartered in Gothenburg, Sweden. SKF's Seals Division is one of the
world's leading suppliers of precision engineered elastomeric products,
including oil and grease seals, gaskets, dampers, bearing seals, and related
products to automotive, heavy truck, industrial and aerospace customers
worldwide. It has operations in the United States, Germany, Italy, and
throughout the Asia-Pacific region. It employs about 3,400 people and had
1997 sales of over $500 million.