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CMI Industries Sells Chatham Automotive Textile Business to Borgstena

27 October 2000

CMI Industries Sells Chatham Automotive Textile Business to Borgstena

    COLUMBIA, S.C. and BORGSTENA, Sweden, Oct. 27 CMI
Industries, Inc. and AB Borgstena Textile, Ltd. announced today that
Borgstena Textile North America, a wholly owned subsidiary of AB Borgstena
Textile, located in Borgstena, Sweden, has purchased all of the assets of
CMI's Chatham Automotive Textile business in Elkin, N.C.
    According to CMI's President and CEO Joseph L. Gorga, CMI and Borgstena
have been partners in their automotive operations since 1993, with the company
achieving significant growth in sales and market share in the North American
OEM automotive market.  Mr. Ulf Ellwen, CEO of Borgstena remarked that the
acquisition of Chatham is a major step in Borgstena's strategy of providing
automotive textiles to its customers on a global basis.  Borgstena is an
international company headquartered in Borgstena, Sweden and the company has
operations in Germany, Portugal, Brazil that, along with the North American
acquisition, positions the company as a leading provider of automotive
textiles in the world's largest markets.  Borgstena also has joint
manufacturing ventures in Malaysia and South Korea and will continue Chatham's
successful relationship with Tatsumura Textile Co., Ltd. in Japan.
    Borgstena will operate its North American subsidiary as Chatham Borgstena
Automotive Textiles and will continue to be located in Elkin, N.C.  The
company's global customer base includes General Motors - Opel, Daimler
Chrysler, VW, Volvo, SAAB, Scania, Mitsubishi, Nissan, Toyota, Honda, Suzuki,
Jaguar, Rover, and Mazda.
    Mr. Ellwen also noted that Mr. Jim Meek, currently Senior Vice President
of the Chatham Automotive Textiles business, will serve as President-CEO of
Chatham Borgstena Automotive Textiles.  Borgstena also plans to retain all of
the current CMI associates affiliated with the automotive business.
    Mr. Gorga also noted that CMI will continue to operate the company's
Consumer Products Division, also located in Elkin, N.C., as it has done since
its acquisition in 1992.  The consumer products business employs approximately
330 associates and produces blankets, mattress pads and related consumer
products for leading retailers and manufacturers.