Wolverine Tube (NYSE:WLV)
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Wolverine Tube Announces Expansion Into Mexico
HUNTSVILLE, Ala., Oct. 13 /PRNewswire-FirstCall/ -- Wolverine Tube, Inc.
(NYSE:WLV), today announced plans to commence manufacturing operations in the
Monterrey area of Mexico. The Mexico facility will produce both fabricated
products and technical tube in a 130,000 square foot leased facility.
This marks the first Wolverine operation in Mexico and underscores the
Company's high level of commitment and confidence with its customer base and
markets in Mexico. Furthermore, we believe that this location provides growth
opportunities to serve other Latin American markets. Wolverine will initially
invest approximately $5.0 million in the facility, of which, approximately $3.0
million is existing equipment that is being redeployed.
Commenting on the announcement, Dennis Horowitz, Chairman, President and Chief
Executive Officer, said, "Currently we have substantial and profitable sales
into Mexico and well-established relationships with major customers in that
country. This manufacturing facility will allow us to provide them with
improved service and expanded capabilities as our business and our customer
base continues to grow."
"Initially", added Horowitz, "the Mexico facility will produce brazed
assemblies for our HVAC/R and appliance customers and will begin to produce
technical tube in early 2005. We anticipate, by the first quarter of 2005,
employing approximately 100 people. The Mexico operating results are expected
to have a slightly negative impact on the fourth quarter of 2004 and to be
accretive in the full year 2005. Including the capital investment for this
Mexico expansion, we will remain within our total Corporate 2004 capital
spending projection of $10.5 to $12.0 million." Horowitz continued by saying,
"experienced Wolverine employees will manage this operation. Imran Mukhtar, a
Wolverine employee since 1997, will be the onsite Plant Manager and Chris
Foster, who has been with Wolverine for over three years, will have
responsibilities as General Manager for both our Carrollton, Texas and Mexico
facilities."
About Wolverine Tube, Inc.
Wolverine Tube, Inc. is a world-class quality partner, providing its customers
with copper and copper alloy tube, fabricated products, metal joining products
as well as copper and copper alloy rod, bar and other products. Internet
addresses: http://www.wlv.com/ and http://www.silvaloy.com/ .
Forward-looking statements in this press release are made pursuant to the "Safe
Harbor" provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements use such words as "will," "expect," "believe,"
"anticipate," and similar terminologies. This press release contains
forward-looking statements regarding the timing, scope and results of the
Company's new manufacturing operations in Mexico, as well as, the Company's
expectations of future customer demand, growth opportunities and capital
expenditures, including investments in the Mexico facility. Such statements
are based on current expectations, estimates and projections about the industry
and markets in which the Company operates, as well as management's beliefs and
assumptions and information currently available. These forward-looking
statements are subject to various risks and uncertainties that could cause
actual results to differ materially from those stated or implied by such
forward-looking statements including, without limitation, unanticipated costs
or delays in the ramp-up of production at our new Mexican facility, our ability
to maintain customer relationships and develop growth opportunities in Latin
American, and the level of future customer demand in that market. The Company
undertakes no obligation to publicly release any revision of any
forward-looking statements contained herein to reflect events or circumstances
occurring after the date hereof or to reflect the occurrence of unanticipated
events. A discussion of additional risks and uncertainties which could cause
actual results to differ from those contained in the forward-looking statements
contained herein, can be found in the Company's Annual Report on Form 10-K for
the most recently ended fiscal year and reports filed from time to time with
the Securities and Exchange Commission.
Contact: James E. Deason
Executive Vice President,
Chief Financial Officer
(256) 580-3510
DATASOURCE: Wolverine Tube, Inc.
CONTACT: James E. Deason, Executive Vice President, Chief Financial
Officer of Wolverine Tube, Inc., +1-256-580-3510
Web site: http://www.wlv.com/
http://www.silvaloy.com/