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LucasVarity Automotive to Build New Plant in Mexico

9 July 1999

LucasVarity Automotive to Build New Plant in Mexico

    QUERETARO, Mexico--April 27, 1999--LucasVarity Automotive today conducted "laying of the first stone" ceremonies for a new $8 million, 157,000 sq. ft. manufacturing facility.
    Construction is expected to be completed by Oct. 1, 1999, when the company will begin to transfer production from an existing facility in Queretaro to the new location. Situated on 13 acres in an industrial park about 15 minutes from the current facility, the new plant can be expanded to 230,000 sq. ft.
    The new facility marks another important stage in the expansion of LucasVarity Automotive's operations in Mexico. In 1985, it established a joint venture, Frenos y Mecanismos, to produce calipers, drum brakes and disc brake assemblies. In 1997, it acquired the 60 percent of Frenos y Mecanismos it did not already own from part of the DESC Group, a large Mexican company.
    At the time of the purchase, the 40,000 sq. ft. Queretaro facility employed 54 people, compared with 120 people now. At full production, the new facility is expected to employ about 360 workers.
    The plant's customer base will expand from General Motors, DaimlerChrysler and Kia to include Ford, Honda, Nissan, Cami, and the Auto Alliance. Production will be for both domestic and export markets. The company plans to operate both plants simultaneously for a period of up to eight months to ensure a smooth transition and to allow for the hiring and training of new workers.
    "From a small plant, the new Queretaro facility will become one of our larger braking facilities," said Steve Lunn, LucasVarity Automotive's chief operating officer. "This investment reflects our confidence in the Mexican workforce and our commitment to servicing our customers in emerging markets throughout the world."
    LucasVarity Automotive is headquartered in Livonia, Mich., and produces braking, electrical and electronic systems, diesel systems and aftermarket replacement parts for the global automotive industry.
    It is a division of LucasVarity plc, which designs, manufacturers and supplies advance technology systems, products and services in the world automotive and aerospace industries.