Wescast Industries Inc.

Wescast Industries Inc.

September 15, 2005 11:05 ET

Wescast Announces Termination of the Brantford, Ontario Foundry Sale

BRANTFORD, ONTARIO--(CCNMatthews - Sept. 15, 2005) - Wescast Industries Inc. ("Wescast")(TSX:WCS.SV.A) announced today that the agreement with Gemini Fire Protection Solutions Inc. ("Gemini") for the sale of the land, buildings and the majority of the production assets associated with its foundry operation in Brantford, Ontario has been terminated.

The agreement that was originally announced on August 4, 2005 anticipated that the sale to Gemini would be concluded during the third quarter of 2005. Under the terms of the agreement, it was anticipated that Gemini would continue to support certain production requirements for Wescast under an ongoing supply arrangement. However, Gemini has been unable to resolve certain aspects of the agreement necessary to complete the transaction, resulting in Wescast's decision to terminate the agreement.

Wescast has been gradually reducing production and workforce levels at the Brantford foundry since February of this year. The Company intends to operate the Brantford facility to meet remaining customer requirements, with production in the facility expected to be concluded within the first half of 2006. The exact timing is dependent on customer demand requirements.

"It is unfortunate that we are unable to move forward with the sale to Gemini at this time. However, our discussions with Gemini are ongoing and we remain hopeful that these discussions will result in a successful agreement within the next few months. In the meantime, we will continue to implement our North American optimization plan in an effort to better align our global capacity, if an agreement with Gemini is not concluded," said Ed Frackowiak, Chairman and CEO.

About Wescast

Wescast Industries Inc. is the world's largest supplier of exhaust manifolds for passenger cars and light trucks. The Company designs, casts, machines and assembles high-quality iron exhaust manifolds, turbine housings and integrated turbo manifolds for automotive OEMs. The Company's global sales and design activities are co-ordinated through its technical development centre in Canada and supported by sales and design centres in the United States, Japan and Europe. The Company operates seven production facilities in North America and Europe, including a 49% interest in United Machining Inc., an accredited Minority supplier in Michigan. The Company is recognized worldwide for its quality products, innovative design solutions and highly committed workforce.

Learn more at www.wescast.com.

Forward Looking Statements

Wescast and its representatives may periodically make written or oral statements that are "forward-looking", including statements included in this news release and in our filings with applicable Securities Commissions and in reports to our stockholders. These statements may be identified by words such as "believe," "anticipate," "project," "expect," "intend" or other similar expressions, and include all statements which address operating performance, events or developments that we expect or anticipate may occur in the future (including statements relating to future sales or earnings expectations, volume growth, awarded sales contracts and earnings per share expectations or statements expressing general optimism about future operating results). Such statements involve risks and uncertainties that may cause unanticipated events and actually evolve to be materially different from those either expressed or implied. These factors include, but are not limited to, risks associated with the automotive industry, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated in the forward-looking statements. For more detailed information regarding these risks you may refer to Wescast's publicly filed documents with applicable Canadian securities regulators. Wescast undertakes no obligation to update any of these forward-looking statements.

Contact Information

  • Wescast Industries Inc.
    Mr. Ed Frackowiak
    Chairman & Chief Executive Officer
    (519) 750-0000