Commercial Vehicle Group Breaks Ground on New Plant in Mexico
23 Feb, 2011, 03:17 ET
NEW ALBANY, Ohio, Feb. 23, 2011 /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 held a ceremony to break ground marking the start of construction on the Company's new production facility in Saltillo, Mexico.
The 159,550 square-foot facility is expected to be completed in August 2011 with initial operations starting in March 2011. The CVG facility will be a three-building campus under a "Center of Excellence" concept in which each building will be focused on a different and specific production process. The campus will also include a soccer field for employees.
When completed, the facility will produce air-suspension and static seats; formed flooring systems; thermoformed plastics and injection-molded hard and soft trim interior components such as headliners, back walls and curtains. It will also provide sequencing and bulk packaging services.
The facility is being constructed under a definitive agreement with Daimler Trucks North America LLC, a Daimler company (DTNA) to provide parts for DTNA's manufacturing facilities in Saltillo and Santiago, Mexico and three facilities in the United States. The CVG parts will be used on several DTNA models including the Cascadia, Columbia, Western Star and M2 platform-based vehicles.
Operating as Comercial Vehicle Group Mexico S. de R.L. de C.V., the plant is located at Boulevard Cesar H. Cantu Benviades # 370 Sur Colonia Parque Industrial Derramadero CP 25300. The building will be built and owned by Property Alianza of Mexico.
Mervin Dunn, President and Chief Executive Officer of Commercial Vehicle Group stated, "Saltillo is an ideal place for CVG to build a new facility as a part of our ongoing relationship with Daimler. Saltillo also has a large and growing automotive supply base that we feel offers CVG new development opportunities. In addition, the area's seven Universities and three technical schools will make it easy for us to find a skilled and qualified workforce."
"Our state-of-the-art facility, located in the same industrial park as Daimler, will help us better serve the needs of Daimler as a major and valued CVG customer. We also feel it will also allow us participate in a low-cost production area and, at the same time, explore new business opportunities in this area of the world," Dunn said.
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group is a leading supplier of fully integrated system solutions for the global commercial vehicle market, including the heavy-duty truck market, the construction and agriculture markets and the specialty and military transportation markets. The Company's products include static and suspension seat systems, electronic wire harness assemblies, controls and switches, 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 and Asia. Information about the Company and its products is available on the internet at www.cvgrp.com.
About Daimler Trucks North America
Daimler Trucks North America LLC, headquartered in Portland, OR is the leading medium- and heavy-duty truck manufacturer in North America. Daimler Trucks North America produces and markets Class 4 - 8 vehicles and is a Daimler company, the world's leading commercial vehicle manufacturer.
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 facility operating and completion dates, new business development opportunities, hiring opportunities or other financial information. 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) the impact of changes in governmental regulations on the Company's customers or on its business; (vi) the loss of business from a major customer or the discontinuation of particular commercial vehicle platforms; (vii) the Company's ability to obtain future financing due to changes in the lending markets or its financial position; and (viii) 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, 2009. 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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