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GKN Sinter Metals to Open Greenfield Plant in Brazil

7 March 2000

GKN Sinter Metals to Open Greenfield Plant in Brazil

        Land Acquisition Completed, Architectural Blueprints Readied,
                   With Groundbreaking Scheduled for March


    AUBURN HILLS, Mich., March 7 GKN Sinter Metals today
announced it had acquired a 15-acre (60,000 m2) parcel of land in Hortolandia,
Sao Paulo, Brazil, close to the Viracobos Airport, in order to construct a
97,000 sq. ft. (about 9,000 m2) production plant.  Groundbreaking is scheduled
for later this month.
    The world's leading manufacturer of powder metal components first revealed
its intention to enter the Brazilian market last August when the company
announced it had hired Radu Unanian as its Commercial Development Director for
the country.
    According to GKN Sinter Metals President & CEO Seifi Ghasemi, the
company's decision to establish a significant presence in Brazil was dictated
first by a need to be close to global customers who have local manufacturing
facilities and, second, because of the ability to offer options that might be
advantageous for other customers who import into Brazil.
    Mr. Unanian, who has more than 25 years of production, sales, finance,
human resource and transportation experience in the powder metals industry at
some of South America's leading companies, said that the new GKN Sinter Metals
plant would produce components and assemblies with applications for automotive
OEMs and Tier I suppliers as well as for customers in other industry sectors.
    "Even before construction of our plant has begun," he said, "we are
committed to manufacturing parts with an estimated value of R$30 million
(US$17 million) which consists of new- and existing-customer orders."

    PM Advantages, GKN Capabilities
    The primary advantage of powder metal technology over competing parts
manufacturing processes such as casting or conventional machining is the
ability to produce net-shape or near net-shape components, thereby greatly
reducing or eliminating material waste and lowering cost.
    GKN Sinter Metals, offering the P/M industry's broadest range of products,
processes and technologies, will utilize in its Brazil plant 20 to 500 ton
compacting presses; sintering, steam, heat treatment and plasma furnaces; 20
to 500 ton sizing presses, and secondary machining equipment for turning,
grinding, drilling, taping, and welding.
    A state-of-the-art blending operation will enable the company to offer
products in bronze, brass, iron, and other alloys.  A dedicated tooling
operation is being incorporated into the facility to optimize quality and
delivery parameters, and to ensure cost efficiencies in production set-ups.
    Mr. Unanian expects the plant to be operational by December of this year.

    GKN Sinter Metals, with over 30 locations worldwide and business assets
spanning 13 countries and five continents, has annualized sales of
approximately $850 million and is the world's leading producer of powder metal
components.  The Company employs close to 7,000 people and produces over 5,000
different parts for the automotive, commercial vehicle, home appliance, lawn &
garden, office equipment, power tool, and recreational vehicle markets.  GKN
Sinter Metals is a wholly owned subsidiary of U.K.-based GKN plc, a global
industrial company.