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GIS will invest US$130 million Monterrey, Nuevo Leon.- Grupo Industrial Saltillo (GIS) will invest US$130 million this year, of which US$65 million will be spent to increase by 40% production capacity of their precision auto parts business –brake systems, clutch and crankshafts- Alfonso Gonzalez MIgoya informed. In a phone interview, Mr. Gonzalez Migoya, President and CEO for GIS, explained that the decision to make this strong investment in the Group’s Auto Parts Division is based on the arrival of new automobiles assembly plants to Mexico, since the company expects to enter more agreements as Tier 2 supplier. He said that the company expects to close next April the sale of their iron heads and blocks production business to the Brazilian company Tupy, from which they will receive US$439 million, which will be used to take their debt to zeros, leaving in addition some cash flow of around US$200 million for future investments. Mr. Gonzalez Migoya pointed out that from this amount, the Company will spend around US$65 million to expand their precision auto parts business line, because the Company’s strategic priority is strengthening this business unit, increasing annual manufacturing volume from 150,000 tons to 210,000 tons.
Date: 26/03/2012

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