PACCAR Opens New Canadian Plant
28 September 1999
PACCAR Opens New Canadian Plant
STE. THERESE, Quebec--Sept. 28, 1999--PACCAR Inc today opened a new, C$135 million state-of-the-art truck manufacturing plant in Ste. Therese, Quebec, Canada, which Chairman and Chief Executive Officer Mark C. Pigott said will contribute towards the company's goal of increasing its share of the North American market for medium-duty trucks."One of the key growth opportunities for PACCAR is the Class 4-7 truck market in North America. This world-class facility and the ongoing development of new products, such as the Peterbilt 270 and the Kenworth K300, are key elements in achieving our goal of being a leader in the medium-duty truck market," said Pigott. "The facility's capacity is 20,000 trucks per year."
The new 425,000-square-foot PACCAR Ste. Therese facility features the latest in manufacturing technology, such as supplier logistics partnerships, modern production processes, state-of-the-art paint facilities and innovative ERP systems. Under construction for approximately 12 months, the plant began operations early last month with the hiring of 170 employees.
The opening ceremony, which included employees and officials from local, provincial and national governments, included a presentation of the plant's first truck -- a Kenworth T300 -- to Mr. Elie Fallu, mayor of Ste. Therese.
"This Kenworth truck represents the strength of PACCAR's 30-year partnership and commitment to the region's community," said Pigott, who added that contracts granted to local firms were worth close to 70 percent of the plant's total cost. Also speaking at the ceremony were Mr. Bernard Landry, Deputy Premier of Quebec and Minister for Economy and Finance and the Honourable Martin Cauchon, Federal Minister of National Revenue and Secretary of State responsible for Canada Economic Development.
PACCAR Ste. Therese was financed with a private/public-funding package, which included a C$110 million investment by PACCAR. Government contributions included a C$13.5 million loan from the governments of Canada and Quebec under the Canada-Quebec Subsidiary Agreement on Industrial Development (1991).
Approximately C$2 million in employee training costs will be paid from the new Fonds de developpement industriel du Quebec (Quebec Industrial Development Fund.) A C$10 million loan from Quebec through the Fonds pour l'accroissement de l'investissement prive et la relance de l'emploi (FAIRE) (Fund to Promote Private Investment and Job Revitalization) also was included.
PACCAR has invested C$500 million in its North American facilities during the past several years. Its successful acquisition of DAF Trucks in late 1996 and the subsequent purchase of Leyland Trucks in June of last year were important factors in the company's record earnings in 1998 and again in the first half of 1999.
As a result of these acquisitions, PACCAR is 88th on the Forbes magazine current list of companies ranked according to size of revenues earned outside of the United States, with more than US$3 billion in revenues generated in Europe, Canada, Mexico and Australia.
PACCAR's truck nameplates -- Kenworth, Peterbilt, DAF and Foden -- are known for their exceptional quality, styling, safety and driver comfort as well as consistently higher resale value. PACCAR leads the industry in return on equity and has recorded a profit for each of the last 60 years. The company has paid a dividend consistently since 1941.
In July, PACCAR reported record first-half sales and earnings of US$4.2 billion and US$259 million (US$3.29 per diluted share), respectively. The second quarter of 1999 was the tenth quarter in a row in which PACCAR's profits exceeded the comparable quarter a year earlier.
PACCAR, a US$8 billion company, is a leader in the design, development and manufacture of high quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, DAF and Foden nameplates. It also provides financial services and distributes truck parts related to its principal business. In addition, the Bellevue, Washington-based company manufactures industrial winches.
PACCAR shares are traded on the NASDAQ Exchange, symbol PCAR, and its homepage can be found at www.paccar.com.