Mexican Otay Mesa Auto Plant at 75% of Production Capacity
25 September 1998
Mexican Otay Mesa Auto Plant at 75% of Production CapacityCHULA VISTA, Calif., Sept. 25 -- B.A.T. International's (OTC Bulletin Board: BAAT) is operating its new composite chassis auto plant in Otay Mesa, Mexico at 75% of capacity of the Phase I production schedule (3.5 vehicles per week), one month ahead of the projected schedule. In the next month, the work force will be expanded to complete one vehicle per day and accomplish Phase I goals. Phase II will gradually increase plant capacity to 3 vehicles per day. B.A.T., through one of its subsidiaries, has bought out the 40% share of one of the partners, Detech Corp., and has increased its ownership position in the Otay Mesa plant to 80%. The plant will be producing electric, gasoline and propane vehicles. B.A.T. will assume all existing and future responsibilities for operating the plant in conjunction with the remaining partner, Environmental Process Advanced (E.P.A.) of Mexico. The plant is designed to manufacture complete composite chassis, fenders, hoods, roofs, and all mechanical components including fixtures such as brake and gas pedal assemblies. Future production schedules may be affected by lead times on vendor supplied components, since in-plant production activities are ahead of schedule. The monocoque composite chassis is ideal for electric, gasoline and propane vehicles because it is extremely durable, strong, safe and can carry heavy loads. The Mexican auto plant is a showcase facility and training center to setup other vehicle manufacturing plants across Mexico. Initial orders for vehicle remain strong from various high profile customers. B.A.T. International is organized as a holding company with major ownership positions in a set of subsidiary companies now commercializing advanced automotive and energy technology products developed by B.A.T. over the last six years, including anti-friction metal treatment, electric vehicles, super-efficient or high powered engines, advanced batteries and power electronics, electric bicycles & scooters and electric power generation, (for more information on B.A.T. Int., see B.A.T.'s web site at http://www.baat.com). This press release contains forward-looking statements that should not be used to make an investment decision. Please refer to B.A.T. International's web site & other sources for more detailed Company information or call Cheryl Mitchell, investor relations (360-384-2730).