Reko International Group Inc.
TSX VENTURE : REK

Reko International Group Inc.

December 13, 2010 15:26 ET

Reko Announces Formation of Reko Global Services, LLC, New Southeastern United States Presence and Cost Sharing Agreement

WINDSOR, ONTARIO--(Marketwire - Dec. 13, 2010) - Reko International Group Inc. (TSX VENTURE:REK) ("Reko") is pleased to announce that today it signed an agreement with a related company to ToolCare US International, LLC of Auburn, Alabama ("ToolCare") to form Reko Global Services, LLC ("RGS"). Each of Reko and ToolCare will own 50% of RGS.

RGS is being formed to improve Reko and ToolCare's low-cost country purchases and to enhance the offerings to our customers. By joining with a partner to co-ordinate low-cost country purchases, Reko gains access to a more developed off-shore sourcing program as well as sharing the fixed costs associated with enhancing this program, with a third-party partner. 

As part of the agreement, Reko will expand its manufacturing footprint to include a presence in Auburn, Alabama by co-locating at ToolCare's existing facility. This expansion provides Reko access to the southeastern United States automotive industry at a time when its OEM and Tier 1 customers are expanding in the same region.

"We are very excited to partner with ToolCare on low-cost country tool builds and gain access to the southeastern United States market," said Diane St. John, CEO of Reko. "Our customers continue to demand improvements in our low-cost country sourcing and pricing. ToolCare possesses an improved process for sourcing low-cost country purchases, which will be immediately available to RGS. Having a manufacturing presence in Alabama within a 5 hour drive of a significant portion of the OEM and Tier 1 assembly and parts productions plants removes a significant hurdle for Reko in realizing on it sales opportunities in the southeast."

"We look forward to a long-term working relationship with Reko," said John Chuplis, President of ToolCare. "With ToolCare and Reko's existing customer bases and product mixes being mutually exclusive, we see significant opportunities in combining our low-cost country purchasing expertise with Reko's localized manufacturing expertise."

Founded in 1976, Reko International Group (TSX VENTURE:REK) is a highly integrated, technology driven engineering and manufacturing firm providing engineered solutions for the automotive, aerospace and consumer product markets. In its nine production facilities in Ontario, Reko designs and manufactures precision moulds and other related industrial tooling, factory automation and provides high tolerance machining for extremely large parts.

ToolCare US International is a global provider of total tooling management services including the complete design and build of new tooling from prototype to production molds. From their new state of the art NAFTA facility located in Auburn, Alabama, the heart of the industrialized Southeast, they manage an established network of strategic partners in North America, Europe, and Asia. This allows ToolCare to provide global manufacturing and service designed for geographic proximity, multiple location consistency and best value technology. ToolCare specializes in the automotive, outdoor recreation and power equipment, agriculture and appliance markets. 

 REKO INTERNATIONAL GROUP INC.
5390 Brendan Lane
Oldcastle, Ontario 
N0R 1L0
www.rekointl.com

 SUBSIDIARIES/DIVISIONS:

 Canada:

Reko Tool & Mould (1987) Inc.

    Divisions –

    − Reko Automation and Machine Tool

    − Concorde Machine Tool

United States:

 • Reko International Sales Inc.

 • Reko International Holdings Inc.

Contact Information

  • Reko International Group Inc.
    Carl A. Merton
    Chief Financial Officer
    (519) 737-6974
    www.rekointl.com
    or
    ToolCare US International
    John Chuplis
    President
    (334) 321-4980