Borg-Warner Automotive Plans for Anticipated Growth in Japan
21 October 1999
Borg-Warner Automotive Plans for Anticipated Growth in Japan with Plant Expansion
NABARI CITY, Japan, Oct. 21 -- Changes in engine technology
are expected to significantly increase Borg-Warner Automotive's
sales in Japan, according to John F. Fiedler, BWA chairman and chief executive
officer. To seize the opportunity presented by this expected growth, the
company has expanded its Morse TEC operation in Nabari City, known as BWA-KK,
by 50 percent.
"The switch from belts to more durable timing chain systems makes engines
more fuel-efficient and reduces emissions," Fiedler said. "BWA's small-pitch
silent chain technology is at the heart of a timing system we're marketing for
use on overhead cam engines. The chain has been specifically designed to
offer low noise, power, and durability, all in a compact package."
Fiedler said that of the 15 million engines produced by Japanese
automakers worldwide, only 3.6 million, or about 24 percent, currently use
chain. By the year 2005, fully half of these engines -- about
8.5 million -- are expected to use chain drives. BWA is currently working
with a number of automakers for 2000-model year vehicles, with volumes
increasing significantly next year and beyond. Estimated market potential for
this system is about $250 million.
"BWA-KK's enhanced capabilities in manufacturing, testing, technical
support, and research and development will enable us to serve our customers
with ever-improving efficiency and effectiveness," said Ron Ruzic, President
and General Manager, BWA Morse TEC. "The expansion is a clear indication of
our intent to take maximum advantage of the enormous opportunities presented
by recent trends in the engine business. It also reflects the importance of
this operation, and the market it serves, to the future of BWA." Customers,
company officials, government leaders and employees celebrated the opening of
the expanded Nabari City facility, as well as the operation's fifteenth
anniversary, at a ceremony here this month.
BWA's Morse TEC group is the global leader in the design and manufacturing
of automotive chain systems and components for engine timing, automatic
transmission and four-wheel drive applications. "The expansion in Nabari City
reinforces our commitment to building on our long history of product
leadership in creating a strong future for BWA and its employees, shareholders
and customers worldwide," said Fiedler.
Chicago-based Borg-Warner Automotive, Inc. is a product leader in highly
engineered components and systems for vehicle powertrain applications
worldwide. The company operates 58 manufacturing and technical facilities in
13 countries serving worldwide vehicle manufacturers. Customers include Ford,
DaimlerChrysler, General Motors, Toyota, Caterpillar, Navistar, PSA and VW
Group. Website at http://www.bwauto.com .
Statements contained in this news release may contain forward-looking
statements as contemplated by the 1995 Private Securities Litigation Reform
Act that are based on management's current expectations, estimates and
projections. Words such as "expects," "anticipates," "intends," "plans,"
"believes," "estimates," variations of such words and similar expressions are
intended to identify such forward-looking statements. Forward-looking
statements are subject to risks and uncertainties, which could cause actual
results to differ materially from those projected or implied in the
forward-looking statements. Such risks and uncertainties include:
fluctuations in domestic or foreign automotive production, the continued use
of outside suppliers by original equipment manufacturers, fluctuations in
demand for vehicles containing the Company's products, general economic
conditions, as well as other risks detailed in the Company's filings with the
Securities and Exchange Commission, including the Cautionary Statements filed
as Exhibit 99.1 to the Form 10-K for the fiscal year ended December 31, 1998.
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