MAHLE invests 32 million euros in a new plant in Wustermark, Germany

In less than eight months, the automobile supplier MAHLE managed to construct a new plant in Wustermark, Germany, and start up production of camshafts for passenger cars.

Dr. Heinz K. Junker, Chairman of the Management Board, emphasized to employees and guests today at the opening of the plant the importance this new facility will have for the future of MAHLE. The Wustermark plant is one of most modern production facilities for camshafts in the world. In the medium-term, the site in Wustermark will be expanded to become the camshaft competence center for the MAHLE group.

In addition to considering specific favorable site conditions, the decision to build the new facility in Wustermark was also made due to excellent employee qualifications and state-of-the-art, cost-optimized production technology. Junker stressed that "We also tried to consciously point the way towards Germany as a production location, since opening a new plant in the countryside that will serve an internationally-active and expansionary company in the automobile supplier industry is not a common step in today's world."

The new MAHLE plant in Wustermark is located on a 30,000 m² site and has a production area of approximately 14,000 m². In the first construction stage, with an investment volume of approx. 32 million euros, MAHLE will be able to produce around 1.8 million camshafts per year on highly automated, yet flexible production lines. These lines will make it possible to manufacture the widest variety of camshafts for almost any type of engine, from 1-cylinder engines up to 12-cylinder engines. Expansion of capacities to 2.4 million camshafts per year is currently being planned.

Today in Germany, MAHLE manufactures and supplies approximately 4.2 million camshafts that are ready for installation and around 3.5 million unmachined camshafts per year, making them the largest independent camshaft manufacturer in Europe. MAHLE also has camshaft production facilities throughout Germany in Leibertingen, Gaildorf, and Plettenberg. In addition to all that, MAHLE manufactures camshafts at its plants in Brazil and India.

MAHLE in Wustermark currently only supplies the Bavarian car manufacturer BMW, which started a joint venture with MAHLE at the beginning of 2003 to manufacture and supply camshafts. However, in the medium-term, MAHLE wants to expand its business and supply other automobile and engine manufacturers with camshafts made in Wustermark.

The MAHLE Group is the globally leading manufacturer of pistons, engine components and filter systems. In 2003, more than 30,000 MAHLE employees achieved sales of approximately 3.2 billion euros in over 60 production locations. Thus, MAHLE is among the 30 principal automotive suppliers throughout the world.

Stuttgart, June 18, 2004