Commercial Vehicle Group To Move To Facility In The Ukraine
NEW ALBANY, Ohio, July 17, 2012 /PRNewswire/ -- Commercial Vehicle Group, Inc., (Nasdaq: CVGI) a leading supplier of fully integrated system solutions for the global commercial vehicle market, is pleased to announce that it is moving to a new facility in L'viv, Ukraine. The new plant will replace CVG's currently leased building in Kamyanets-Podilsky, Ukraine and will also be leased. Capital expenses and costs for the move are anticipated to be in the range of approximately $1.2 to $1.4 million. The Company expects the capital requirements to be substantially completed in the second half of 2012.
The new 8,000 square meter (86,211 square foot) building will produce wire harnesses and other electrical distribution system products for both light vehicles and commercial vehicles such as heavy trucks and construction equipment. Pre-launch activities have already commenced with a formal opening scheduled for October 2012 when total employment is expected to be approximately 125. Existing orders should result in the employment of approximately 650 workers by the end of 2013 when all work is launched or transferred to the new building.
The new L'viv plant will produce wire harnesses for Webasto, Continental and CVG's new Skoda Auto a.s. contract that was announced in November 2010 and set to begin production in 2012. Skoda Auto, located in Mlada Boleslav, Czech Republic, is a member of the Volkswagen Group, the largest car manufacturer in Europe.
The Skoda contract calls for CVG to provide the auto manufacturer with wire harnesses to be used in car doors, seats, bumpers and parking sensors for two new car lines. Currently, CVG is delivering similar products for the Skoda Yeti, an SUV, and the Superb B6. In addition to the manufacture of parts, CVG is also supplying Skoda with design activities, development and engineering services, drawings, prototyping, production samples and customer service assistance.
Kevin Frailey, President and General Manager - Electrical Systems for CVG, said, "We are very pleased to announce our move to a new facility in an essential part of the world. Our new plant, which has space for growth, is located in an area that has a very stable and capable workforce. We believe it will keep CVG more competitive in Euro Zone and help us pursue new business in a rapidly developing part of the world," Frailey continued.
"Specifically, this new factory puts us approximately 300 km, or 186 miles, closer to our European customers. We expect that will result in better customer responsiveness and reduced freight costs. We also expect it will also help us accelerate lead times and inventory turnover," Frailey added.
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group, Inc. is a leading supplier of a full range of cab related products and systems for the global commercial vehicle market, including the heavy-duty (Class 8) truck market, the construction, military, bus and agriculture markets and the specialty transportation markets. Our products include static and suspension seat systems, electronic wire harness assemblies, controls and switches, cab structures and components, interior trim systems (including instrument panels, door panels, headliners, cabinetry and floor systems), mirrors and wiper systems specifically designed for applications in commercial vehicles. The Company is headquartered in New Albany, OH with operations throughout North America, Europe, Asia and Australia. Information about the Company and its products is available on the internet at www.cvgrp.com.
This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," or similar expressions. In particular, this press release may contain forward-looking statements about Company expectations for future periods with respect to anticipated revenue from new business awards, capital expenses, costs and additional employees associated with the new facility, along with expected competitiveness, customer responsiveness, freight costs, lead times and inventory turnover. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perspective on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to: (i) general economic or business conditions affecting the markets in which the Company serves; (ii) the Company's ability to develop or successfully introduce new products; (iii) risks associated with conducting business in foreign countries and currencies; (iv) increased competition in the heavy-duty truck market; (v) our failure to complete or successfully integrate strategic acquisitions; (vi) the impact of changes in governmental regulations on the Company's customers or on its business; (vii) the loss of business from a major customer or the discontinuation of particular commercial vehicle platforms; (viii) the Company's ability to obtain future financing due to changes in the lending markets or its financial position; (ix) the Company's ability to comply with the financial covenants in its revolving credit facility; and (x) various other risks as outlined under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for fiscal year ending December 31, 2011 There can be no assurance that statements made in this press release relating to future events will be achieved. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements.
SOURCE Commercial Vehicle Group, Inc.
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