GUELPH, ONTARIO--(CCNMatthews - March 5, 2007) - Linamar Corporation (TSX:LNR) is adding 100,000 square feet of manufacturing space to its existing Linamar Gear facility to accommodate new and future gear manufacturing programs resulting from the company's investment in gear product and process innovations.
Linamar will perform advanced gear processing development work in the expanded space in conjunction with its new research and development and training centre, to be announced later this year, and comes on the heels of the Federal Government's announcement of a repayable loan specifically for gear technology.
"We are thrilled to announce this 100,000 square foot addition to our Linamar Gear facility to accommodate business won based on our proven gear capability and new gear technology advancements," said Linda Hasenfratz, Linamar CEO. "Ultimately we would expect additional employment for Linamar Gear of up to 300 people in this new space."
The expansion of Linamar Gear is supported by investments from Linamar Corporation, the Federal Government through Technology Partnership Canada, and the Provincial Government through the Ontario Automotive Investment Strategy.
"Today's announcement demonstrates the link between innovation and job creation. Linamar's technological advancements in gears will benefit the entire Canadian automotive industry," said Maxine Bernier, Canada Industry Minister.
"The automotive industry is vital to Ontario and our investment in research and technology at Linamar supports job creation and growth in this globally competitive industry," said Sandra Pupatello, Ontario Minister of Economic Development and Trade.
Construction of the Linamar Gear facility will begin in the spring of 2007 and is expected to be completed by the end of the year.
Linamar Corporation (TSX:LNR) is a diversified global manufacturing company of highly engineered products. The company's Powertrain and Driveline focused divisions are world leaders in the collaborative design, development and manufacture of precision metallic components, modules and systems for global vehicle markets. The company's Industrial division is a world leader in the design and production of innovative mobile industrial products, notably its class-leading aerial work platforms. With over 11,000 employees in 36 manufacturing locations, 5 R&D centers and 9 sales offices in Canada, the US, Mexico, Germany, Hungary, China, Korea and Japan Linamar generated sales of $2.2 Billion in 2005. For more information about Linamar Corporation and its industry leading products and services, visit www.linamar.com.
Certain information regarding Linamar set forth in this document, including management's assessment of the Company's future plans and operations may constitute forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results may differ materially from these anticipated in the forward-looking statements due to factors such as regulatory review of the Corporation's offer for Linamar Hungary shares described above, the trading price of Linamar Hungary shares, the number of Linamar Hungary shares tendered to the Corporation's offer, the satisfaction of the closing conditions under the Corporation's offer, customer demand and timing of buying decisions, product mix, competitive products and pricing pressure. In addition, uncertainties and difficulties in domestic and foreign financial markets and economies could adversely affect demand from customers. These factors, as well as general economic and political conditions, may in turn have a material adverse effect on the Company's financial results. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
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