Linamar Corporation
TSX : LNR

Linamar Corporation

July 07, 2008 13:20 ET

Linamar Corporation Acquires New Springboard Into Europe

GUELPH, ONTARIO--(Marketwire - July 7, 2008) - Linamar Corporation (TSX:LNR) announces its acquisition of new automotive manufacturing facility, former Visteon plant in Swansea, Wales, United Kingdom (UK). This facility is Linamar's first foray into manufacturing operations in the UK, and is the sister plant of the Company's recently acquired Power Transfer Units (PTU) business in Nuevo Laredo, Mexico.

"The facility in Wales offers Linamar deeper market share of our PTU business as well as increased critical mass and content per vehicle in Europe," said Linamar's chief executive officer, Linda Hasenfratz. "The location gives Linamar a new springboard into Europe; particularly for engine-related components and modules, given its engine-focused history."

The plan for the approximately 200,000 square-foot facility is to build the business by introducing new products such as camshafts, fly wheels and connecting rods. The scope of the business may expand to additional engine components. Linamar intends to make a substantial investment to modernize the plant and update production equipment to take the business forward.

The acquisition includes the addition of 400 skilled employees to the Linamar family. The employees of the historically engine focused facility are the cornerstone of the investment. Swansea plant has a strong skilled workforce with a wide breadth of knowledge and experience in the manufacture of driveline and engine systems.

"The Welsh Assembly Government has worked closely with the Linamar Corporation both in Canada and the UK in order to secure the long term future of the former Visteon Swansea facility," said Ieuan Wyn Jones, Wale's Minister for the Economy and Transport.

"Attracting investment from an extremely successful global manufacturing company of the calibre of Linamar is good news for Wales and for the long term future of the former Visteon Swansea facility."

"We are pleased to have reached this positive outcome for the Swansea plant," said Donald J Stebbins, Visteon's president and chief executive officer. "This sale is the result of our efforts to ensure a viable future for the plant as part of a leading driveline and PTU supplier."

Linamar now operates 38 manufacturing facilities globally, including four other manufacturing facilities in Western Europe, one in Germany and three in Hungary. This acquisition creates our 5th plant in Europe, our 3rd engine focused facility.

Linamar Corporation

Linamar Corporation (TSX:LNR) is a diversified global manufacturing company of highly engineered products. The company's Powertrain and Driveline focused divisions are world leaders in the collaborative design, development and manufacture of precision metallic components, modules and systems for global vehicle and power generation markets. The company's Industrial division is a world leader in the design and production of innovative mobile industrial equipment, notably its class-leading aerial work platforms and telehandlers. With more than 12,000 employees in 38 manufacturing locations, 5 R&D centers and 9 sales offices in Canada, the US, Mexico, Germany, Hungary, the UK, China, Korea and Japan Linamar generated sales of over $2.3 Billion in 2007. For more information about Linamar Corporation and its industry leading products and services, visit www.linamar.com.

Certain information regarding Linamar set forth in this document, including management's assessment of the Company's future plans and operations may constitute forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results may differ materially from these anticipated in the forward-looking statements due to factors such as customer demand and timing of buying decisions, product mix, competitive products and pricing pressure. In addition, uncertainties and difficulties in domestic and foreign financial markets and economies could adversely affect demand from customers. These factors, as well as general economic and political conditions, may in turn have a material adverse effect on the Company's financial results. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

Contact Information