First step in strategy to accelerate growth:
(PR NEWSWIRE) Elamex Acquires Plastic Molding and Metal Stamping Operation
Elamex Acquires Plastic Molding and Metal Stamping Operation
EL PASO, Texas, July 3 [1997]/PRNewswire/ -- Elamex S.A. de C.V. (Nasdaq:
ELAMF), Mexico's leading contract manufacturer, today announced it has completed the
acquisition of Eurotec's business through an asset based transaction. Eurotec
is Cd. Juarez, Mexico based corporation dedicated to plastic molding and metal
stamping.
Hector M. Raynal, Elamex's Chief Executive Officer, today said this
acquisition will become a new division of Elamex.
Mr. Raynal added: "With this addition, Elamex expands substantially its
plastic molding injection capacity, while at the same time adding metal
stamping and powder coat painting capabilities. Additionally, we will provide
engineering, design, material analysis and specification, and die maintenance
services. This new business fills an important role in some of our projects.
The new division will allow Elamex to provide a wider spectrum of
manufacturing services which some of our customers are looking for, and will
allow Elamex to access new customers."
The newly created division of Elamex will be housed in a 92,000 square foot
facility and will initially serve a customer base of 8 accounts. This
operation generated revenues of $7.9 million dollars in 1996.
In closing, Mr. Raynal stated: "This transaction is the first step in
Elamex's strategy to accelerate its growth rate through selective
acquisitions."
Elamex is Mexico's largest contract manufacturing service provider, fifth
largest contract manufacturing employer worldwide, and a leading participant
in the North American market. The Company delivers high quality finished
assemblies to U.S. and Canadian Original Equipment Manufacturers (OEM's) in
the consumer, telecommunications, computer, industrial, medical and automotive
industries. Elamex participates in an accelerating growth industry, where its
unique competitive advantage results from its demonstrated capability to
leverage low cost, highly productive labor, strategic North American
locations; recognized world class quality; and proven ability to combine high
technology with labor intensive manufacturing processes.
This press release includes forward-looking statements that involve risks
and uncertainties, including, but not limited to, risks associated with the
company's future growth and profitability, the ability of the Company to
continue to increase sales to existing customers and to new customers and the
effects of competitive and general economic conditions.
/CONTACT: Jorge Torres of Elamex S.A. de C.V., 915-774-8254; or Marilena
Michaelidou of The Anne McBride Co., 212-983-1702/
09:29 EDT
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