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Budd to Build New Castings Facility in Tennessee

22 July 1999

Budd to Build New Castings Facility in Tennessee; Investment Expected to Reach $200 Million

    TROY, Mich., July 21 -- The Budd Company's Waupaca Foundry
subsidiary plans to build a new $95 million facility in Etowah, Tenn., about
45 miles equidistant between Knoxville and Chattanooga.
    Siegfried Buschmann, Budd chairman and CEO, today announced the project
along with Tennessee Governor Don Sundquist to community officials at
groundbreaking ceremonies at the 93-acre site.
    The 249,000 square foot plant will produce gray iron castings, such as
brake drums and rotors, for cars and light, medium and heavy-duty trucks.  It
is expected to employ 250 people when fully operational in early 2001.
    "This new foundry is yet another chapter in the continuing growth of
Waupaca Foundry," Buschmann said.  "It will be one of the most technologically
advanced foundries in the country and is an important part of Budd's overall
global strategy."
    "We chose Etowah because of its quality of labor and proximity to our
customer base," said Gary L. Thoe, Waupaca Foundry president and chief
executive officer.
    "We have received a warm welcome and look forward to becoming one of
Tennessee's model corporate citizens."
    Governor Don Sundquist said, "We are proud that Waupaca Foundry has chosen
to locate a plant in Tennessee, and we look forward to working with the
company as it grows and expands its business in Etowah and McMinn County.
There is no doubt that Etowah and McMinn County, as well as the entire state,
will benefit from the capital investment and new jobs being created by
Waupaca."
    At the same time Buschmann added that another $105 million phase of the
development is planned "if market conditions allow."
    "We hope to initiate Phase II of our development shortly after Phase I is
completed," Buschmann said. "That would add another 250,000 square feet and
increase total plant employment to at least 500."
    The new foundry will house centrally located cupolas capable of melting
70-75 tons per hour.  It will operate four molding lines, two of which will
feature Waupaca's "Super Ox" vertically parted molding machines believed to be
the largest in the industry.  There will also be two 100-ton holding furnaces.
    Scott G. Gledhill has been named plant manager.  Gledhill currently serves
as manager of quality and metallurgy at Waupaca's Marinette, Wis., plant.
    Waupaca Foundry, Inc., headquartered in Waupaca, Wis., is one of the
largest foundries in the nation and is a leading producer of castings for the
transportation, agricultural, construction and other industries.
    Waupaca has five other facilities, four in Wisconsin and one in Indiana,
which cover approximately 1.5 million square feet and employs 2,800 people.
    Budd, with headquarters in Troy, Mich., has more than $2 billion in annual
revenues.  The company produces automotive components such as doors, fenders,
roofs, hoods and decklids from sheet metal as well as in sheet molding
composite (SMC), and gray and ductile iron castings for about 100 current
vehicle models.  Budd also makes prototypes, chassis frames and subframes,
bumpers and bumper reinforcements, cold weather starting and heating products
and air bag components for the automotive industry.  Budd operates 32
facilities with more than 10,000 employees.  In addition, the company has
offices in Stuttgart, Germany and Tokyo, Japan.
    Budd is part of ThyssenKrupp Automotive, among the 10 largest automotive
suppliers in the world with $6 billion in annual sales.  ThyssenKrupp
Automotive produces body systems, chassis and suspension modules, powertrain
components and systems to the automotive industry worldwide.