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Visteon to Invest $62 Million in Alba, Hungary Plant

31 May 2000

Visteon to Invest $62 Million in Alba, Hungary Plant

    DEARBORN, Mich., May 31 Visteon Corporation continues to
expand its presence in Europe by announcing a $62 million investment in its
Alba, Hungary Plant.  The investment will enhance Visteon's position as a
leading global supplier of automotive climate control systems, by increasing
its compressor product offerings in Europe.
    The decision to locate this business within an existing facility allows
Visteon to quickly meet the needs of its customers, while positioning itself
for potential future business.  The investment will allow the facility to
install machinery and tooling to begin production of a new line of compressors
in 2002.  At full production, Visteon expects to produce 600,000 compressors
annually at the Alba Plant.
    "This investment is a reflection of Visteon's commitment to expand its
global reach and to better serve our customers," said Frank Croskey, vice
president and general manager, Visteon Climate Control Systems Group, part of
the Comfort, Communications and Safety Segment.  "The flexible design of this
compressor will allow Visteon to support numerous vehicle applications while
contributing to its customers' success."
    The compressor is the "heart" of the vehicle's air conditioning system.
The type of compressor Visteon will manufacture at this facility is
particularly suited to small car applications, where good high-speed
driveability and low fuel consumption are strong selling features.
    The investment, contingent upon government approvals, will enable the
432,000-square-foot facility to install a state-of-the-art technology in
preparation for production of compressors for the European customer base.
Additionally, the investment will create 150 jobs, bringing the total number
of employees at the plant to 1,280.
    "We are excited about the possibilities this investment will bring to the
Alba Plant," said Dan Linder, plant manager, Visteon's Alba Plant.  "The
investment underscores Alba's reputation as a plant that can deliver on its
commitments."
    Visteon's Alba Plant, located in Szekesfehervar, Hungary, currently
manufactures ignition coils, starter motors, turbine fuel pumps, fuel delivery
modules/senders, air fuel charging assemblies, washer reservoirs and fuel
pressure regulators.  The plant's global supply reaches customers in Europe,
North America and Australia. The plant has an annual production of 8.5 million
units.
    Visteon Corporation is a leading full-service supplier that delivers
consumer-driven technology solutions to automotive manufacturers worldwide and
through multiple channels within the global automotive aftermarket.  Visteon
has a global delivery system of more than 130 technical, manufacturing, sales,
and service facilities located in 23 countries. It has 81,000 employees
working in three core business segments: Dynamics and Energy Conversion;
Comfort, Communication and Safety; and Glass.