Wescast Industries Inc.

Wescast Industries Inc.

March 01, 2005 16:11 ET

Wescast to Close Chassis Business


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: WESCAST INDUSTRIES INC.

TSX SYMBOL: WCS.SV.A
NASDAQ SYMBOL: WCST

MARCH 1, 2005 - 16:11 ET

Wescast to Close Chassis Business

BRANTFORD, ONTARIO--(CCNMatthews - March 1, 2005) - Wescast Industries
Inc. ("Wescast") (TSX:WCS.SV.A)(NASDAQ:WCST) announced today its
decision to close the chassis business conducted at its Cordele, Georgia
facility. The shutdown of the Georgia facility is expected to be
completed by the end of the second quarter of 2005.

This announcement follows Wescast's adoption of a revised global
strategy focussed on its successful core competency of designing,
casting and machining powertrain components and its prior statements
regarding the intention to exit the chassis business. Wescast tried for
several months to sell the Georgia operation as a going concern, but was
unable to complete a sale.

"Given the current market conditions, it has become an increasingly
difficult environment in which to complete a sale of the chassis
business. In light of this, and our commitment to the global powertrain
strategy, we have made the decision to close the Georgia facility so
that we can focus all of our resources on our core business. We deeply
regret the effect it will have on our employees, their families and the
Cordele community" said Ed Frackowiak, Chairman and CEO.

Wescast has been in contact with existing customers to ensure a
continuity of supply while production requirements are transferred to
other suppliers. Production at the Georgia facility is expected to cease
in April, 2005.

About Wescast

Wescast Industries Inc. is the world's largest supplier of exhaust
manifolds for passenger cars and light trucks. The Company designs,
develops, casts and machines high-quality iron exhaust 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, Europe and
Japan. The Company operates eight 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
authorities and the U.S. Securities and Exchange Commission. Wescast
undertakes no obligation to update any of these forward-looking
statements.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Wescast Industries Inc.
    Mr. Ed Frackowiak
    Chairman & Chief Executive Officer
    (519) 750-0000