IMPCO Forms Joint Venture With German Automotive Supplier
3 February 1999
IMPCO Technologies Forms Joint Venture With German Automotive Supplier
CERRITOS, Calif.--Feb. 3, 1999--IMPCO Technologies Inc. Wednesday announced the formation of a joint venture with BERU Aktiengesellschaft, an international OEM and aftermarket supplier of diesel and automotive engine components and systems, whereby BERU will purchase a 49 percent interest in The Netherlands-based IMPCO Technologies B.V.
Sales of IMPCO Technologies B.V. are projected to be more than $13 million this fiscal year. The new company will be operated as IMPCO-BERU Technologies B.V.
Robert M. Stemmler, president and chief executive officer, stated, "Establishing a strong marketing and technical base of operations in Europe is a key element of the company's growth strategy.
"The joint venture with BERU will enable IMPCO to significantly expand its OEM and aftermarket presence in Europe, with a particular focus on applying alternative fuel technology to the motor vehicle market, and the trucking and mass transit heavy duty engine markets," added Stemmler.
Stemmler noted that the joint venture firmly establishes IMPCO's position throughout Eastern and Western Europe and enables the company to market its U.S.-developed and validated motor vehicle systems and components to OEMs and engine manufacturers.
Ulrich Ruetz, chairman and chief executive officer of BERU and a recent addition to IMPCO's board of directors, stated: "Our joint venture with IMPCO establishes a growth vehicle in Europe's rapidly emerging alternative fuels industry, utilizing our complementary technological and marketing strengths to maximum advantage. Our expectations are to triple sales in the next five years."
Ruetz added, "BERU's ignition technology, combined with IMPCO's alternative fuels technology, strategically positions the joint venture to capitalize on the significant growth opportunities in Europe."
BERU Aktiengesellschaft, with headquarters in Ludwigsburg, Germany, is a world leader in diesel engine cold-start technology and a major supplier of components for gasoline-fueled engines, with annual sales of approximately $250 million. The company has new technology facilities in Ludwigsburg, the recognized center of the automotive industry in Europe. BERU currently holds 13.9 percent of IMPCO Technologies' common stock.
IMPCO Technologies sells alternative fuel products and services worldwide. With headquarters in Cerritos, the company has additional facilities in Irvine, Calif.; Detroit, Mich.; Sterling Heights, Mich.; Seattle; Mt. Pleasant, Iowa; Mexico, Australia, The Netherlands, France, Germany and the United Kingdom.
IMPCO is a market leader in the Original Equipment Manufacturer (OEM) marketplace and aftermarket for gaseous fuel management systems and components that allow internal combustion engines to operate on clean gaseous fuels such as propane and natural gas. IMPCO provides conversion systems for motor vehicles, forklifts, other material handling equipment, and small portable to large stationary engines.
Certain matters discussed in this news release contain forward-looking information that involves risks and uncertainties that could cause actual results to differ materially from current trends. These include growth of the alternative fuels market, competition, the company's ability to design and market new fuel management products, the company's ability to meet Original Equipment Manufacturer specifications, and other such risks as cited in the company's 1998 annual report on Form 10-K and other documents filed with the Securities and Exchange Commission.