Wescast Awarded Cast Stainless Steel Exhaust Manifold Program With GM
8 February 2000
Wescast Awarded First Cast Stainless Steel Exhaust Manifold Program With General Motors
BRANTFORD, Ontario--Feb. 8, 2000-- (TSE:WCS.A.)Wescast Industries Inc. has been selected by General Motors to supply a fully cast and machined stainless steel exhaust manifold for the 8.1 Litre Mark GM T800 engine program, starting in July 2000. The program will be used in GM's 2500/3500 truck series and marks the first significant cast stainless steel production program for Wescast since it began developing the technology five years ago.
"We are pleased to provide our customers with a cast steel manifold for this engine program," said Ray Finnie, Wescast President and CEO. "The use of a cast stainless steel manifold provides the customer with a cost competitive alternative to fabricated manifolds for high performance engines. The robust strength offered from a stainless steel manifold provides for greater flexibility in engine design, durability, and ultimately, performance."
This new program will generate $14 million in additional annual revenue. The program will be cast and machined at the Company's stainless steel operation in Stratford, Ontario. Wescast will invest over $8.0 million in preparation for this program, adding 11,000 square feet and over 50 people to the facility. The new fully integrated casting and machining facility will allow for high volume production of these stainless steel parts.
Wescast Industries Inc. is the world's largest supplier of cast exhaust manifolds for passenger cars and light trucks. The Company designs, develops, manufactures, and machines high-quality iron and steel exhaust manifolds for automotive OEMs. In addition to auto parts, the Company produces pressure retaining high-alloy cast steel pump components for the petrochemical, pulp and paper and food processing industries. Wescast operates seven production facilities in North America, and three sales and design offices in North America and Europe. The Company is recognized worldwide for its quality products, innovative design solutions, and highly committed workforce. Advisory
Certain information regarding the Companies set forth in this document, including management's assessment of the Companies' future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing, and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserves estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated in the forward-looking statements