Standard Automotive Announces Construction of a Manufacturing Plant
11 January 1999
Standard Automotive Announces Construction of a Manufacturing Plant in Mexico
HILLSBOROUGH TOWNSHIP, N.J.--January 11, 1999--Chassis Production Capacity to Increase by more than 60%, Serving
the Western United States - Production Commencing Within 45 Days
STANDARD AUTOMOTIVE CORPORATION (AMEX: AJX, AJX.PR) "the Company" announced today that it will be establishing a manufacturing facility in Mexico for the construction of maritime trailer chassis.
Standard Automotive entered into a lease for a 65,000 square foot production plant in a modern industrial park in San Luis Rio Colorado, Mexico, located approximately 22 miles south of Yuma, Arizona. The facility is situated on 2.2 acres of prime industrial land, complete with utility installations and conveniently accessible to a modern transportation network. The Company obtained an option to acquire the plant and has also purchased 7.8 acres of property directly adjacent to the plant, which will enable the facility to be expanded by as much as 150,000 square feet, to accommodate, not only the continued growth and demand for maritime trailer chassis, but also the manufacturing of other product lines. State-of-the-art production equipment is currently being installed at the plant, which is expected to be fully operational within the next forty-five (45) days. This new facility will immediately increase the Company's maritime trailer chassis production capacity by more than 60%, and at higher operating margins. By establishing a regional presence Standard Automotive's dominant position in the marketplace will be significantly enhanced by providing the Company with a strategic manufacturing outlet from which it can expand its customer base throughout the western United States.
Steven Merker, Chairman of Standard Automotive commented, "Our decision to establish a manufacturing operation in Mexico represents a major development in the continued growth of Standard Automotive Corporation. This facility will accommodate the significant growth of our maritime trailer chassis business and immediately expands our strategic presence in the Western U.S. We currently have major commitments from our existing customers, which will result in a significant production backlog at this new facility. In addition to expanding our production capacity of maritime trailer chassis by more than 60%, at lower cost and higher profit margins, it will enable us to immediately capitalize on new, significant areas of aggressive expansion and revenue growth for the Company, serving the western United States."
STANDARD AUTOMOTIVE CORPORATION, through its wholly owned subsidiaries is a manufacturer of trailer chassis for transporting maritime and railroad shipping containers, dump truck bodies and a wide variety of truck and specialty dump trailers, which are primarily used in the construction industry and the hauling of bulk commodities.
This release contains certain forward-looking statements which involve known and unknown risks, uncertainties, and other factors not under the Company's control which may cause actual results, performance, and achievements of the Company to be materially different from the results, performance or expectations of the Company. These factors may include, but are not limited to those detailed in the Company's periodic filings with the Securities and Exchange Commission.