EL PASO, Texas, July 14 /PRNewswire/ -- Elamex, S.A. de C.V. (Nasdaq: ELAMF) a leading Mexican manufacturer, agreed today to form a joint venture with GE Mexico S.A. de C. V., a subsidiary of the General Electric Company, based in Fairfield, Connecticut. The joint venture will be located in Juarez, Mexico and will be engaged in the production of plastic molding and stamped metal components.
Hector Raynal, Elamex's Chief Executive Officer said, "This joint venture establishes a firm foundation for growth of Elamex and a basis for future cooperation with GE Mexico."
"The joint venture will begin with a $10 million dollar commitment of business from GE and is expected to be ramped up over the next year," he continued.
James Robo, CEO of GE Mexico said, "We look forward to our joint venture with Elamex as we leverage their considerable manufacturing skills together with our world class technology and our Six Sigma Quality program."
The joint venture will begin production with an existing facility currently operated by Elamex. In addition to supporting GE, the joint venture will continue to look for opportunities within Elamex's client base.
In connection with the joint venture, General Electric will receive a 3-year warrant to purchase up to 6.3% of Elamex's common stock exercisable at $7.81 per share subject to anti-dilution provisions. General Electric will have a right to have a representative on Elamex's Board.
Elamex is a Mexican manufacturing service provider. The Company, in addition to production of plastic and stamped metal components delivers high quality finished assemblies to U.S. and Canadian Original Equipment Manufacturers (OEMs) in the consumer, telecommunications, computer, industrial, medical and automotive industries. Elamex participates in a high 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.
SOURCE Elamex, S.A. de C.V.
CO: Elamex, S.A. de C.V.; GE Mexico S.A. de C.V.
ST: Connecticut, Texas, Mexico
IN: FIN MNG
SU: JVN
07/14/98 17:15 EDT prnewswire.com
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