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New Venture Gear Announces Capacity Expansion

24 September 1999

New Venture Gear Announces Capacity Expansion

    TROY, Mich., Sept. 24 -- New Venture Gear (NVG) is increasing
its 4-wheel-drive transfer case capacity by 20 percent at its New Process Gear
Division in East Syracuse, New York -- a move that will create approximately
300 new jobs.
    The additional 100,000 square feet of production space will allow NVG to
produce approximately 500,000 additional transfer cases a year.
    New Venture Gear President and CEO Fred L. Hubacker stated, "The sport
utility and pickup truck vehicles continue to sell at record volumes.  This
plant expansion gives New Process Gear the ability to meet our commitment to
our customers for transfer case production."
    The decision to expand production was approved by the NVG Board of
Directors at its regularly scheduled quarterly meeting today.  This approval
was made possible in large part, Hubacker went on to say, because of the
cooperative efforts of the United Auto Workers in Syracuse and state and local
government assistance.
    Jerry Mallory, Vice President and New Process Gear Division Manager, said,
"The UAW agreed to more flexible work rules which allow us to create a leaner,
more competitive workplace, and the state of New York provided NVG with
incentive plans and training grants.  The result is going to be a business
expansion that benefits everyone."
    Mike Allen, President of UAW Local 624, who represents the plant's hourly
employees, says the Local agreed to sit down with management and explore ways
of bringing additional work into the plant.  "We worked out a way to have a
win-win situation and a more competitive plant," Allen said.  "The local union
and membership will work hard to make sure this expansion project is
successful."
    Emery Gasparek, President of United Auto Workers Local 2149, who
represents the plant's salaried employees, added, "Certainly this is an
exciting day for all employees at NVG Syracuse.  Our membership will benefit
in the areas of job growth and security."
    New Venture Gear is the world's leading designer and manufacturer of
4-wheel drive transfer cases.  The company is a world leader in the production
of manual transmissions, manual transaxles and other traction control and
driveline components and systems.  In addition to the East Syracuse facility,
NVG has a manufacturing plant in Muncie, Indiana, and will open a third
manufacturing facility in Roitzsch, Germany, in early 2000.  The company is
headquartered in Troy, Michigan, and develops products at its engineering
centers in East Syracuse, New York, and Kenilworth, England.  Additionally,
NVG maintains sales offices in England and Germany.