This marks the first Wolverine operation in Mexico. The company will initially invest approximately $5 million in the facility, of which approximately $3 million represents 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 HVACR 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 million."
Horowitz continued by saying, "Experienced Wolverine employees will manage this operation. Imran Mukhtar, a Wolverine employee since 1997, will be the on-site 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."
For more information, visit www.wlv.com.
Publication date: 10/25/2004