GUELPH, ONTARIO--(CCNMatthews - Aug. 8, 2007) - Linamar Corporation (TSX:LNR) announced today the launch of its Energy and Heavy Machining Initiative. The new initiative focuses on the company's extensive expertise in machined components and modules into new applications in powered or mobile industrial products.
Linamar was introduced to the market through small contracts acquired in the mining sector. This encouraged Linamar to begin to explore the potential market opportunity. The Energy and Heavy Machining business is a $2.5 billion market in North America and $20 billion market globally.
Currently, demand for product exceeds capacity in this market and while it is often assumed growth areas are mainly Alberta or Texas, Energy and Heavy Machining has a broad global market.
"Our machining expertise in Powertrain and Driveline components, modules and systems is competitive in any related market, including Energy and Heavy Machining, ," said Linda Hasenfratz, Linamar CEO. "This initiative allows us to tap into a great new market with excellent potential and further diversify our product offering; Linamar's geographic diversity compliments the global nature of this business."
Linamar's Lintool facility will take on primary responsibility for this exciting new market. Linamar will manufacture down-hole tool kits and above ground components such as: mandrels, gear housings, pump housings and valve bodies.
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 close to 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 close to $2.3 Billion in 2006. 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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