Core Molding Technologies Expands, Announces Navistar Deal

Core Molding Technologies Inc. (Columbus, Ohio), a molder of sheet molding compound and a manufacturer of fiberglass composites, has signed a letter of intent to purchase 22 acres of land and to construct a manufacturing facility in Matamoros, Mexico. The company plans to invest approximately $20.2 million (USD) in

Core Molding Technologies Inc. (Columbus, Ohio), a molder of sheet molding compound and a manufacturer of fiberglass composites, has signed a letter of intent to purchase 22 acres of land and to construct a manufacturing facility in Matamoros, Mexico. The company plans to invest approximately $20.2 million (USD) in the new facility, which will replace its existing leased facility in Matamoros and add compression molding capabilities. The 400,000 ft² (37,161m²) facility, scheduled to open in 2009, is expected to give Core Molding Technologies the capacity for future growth.

Upon the completion of the facility, Core Molding Technologies will move the production of certain products from its Columbus, Ohio facility to the new location to more competitively serve certain customers located in that region. The company expects to move approximately 75 jobs away from Columbus as a result of the transfer. The actual reduction in personnel is expected to be less due to increased labor demand as a result of what the company says is projected recovery in the truck market and new growth opportunities. "By expanding our capabilities in Matamoros and freeing up capacity in our Columbus facility, we gain the flexibility to take on new business, as we had little room for growth in either facility," says president and CEO Kevin L. Barnett.

Core Molding Technologies also has announced a new supply agreement with truck manufacturer Navistar Inc. (Warrenville, Ill.). Under the terms of the agreement, Navistar will continue to purchase 100 percent of its original equipment and service requirements as they presently exist for specified fiberglass reinforced products from Core Molding Technologies through Oct. 31, 2013. The previous agreement was scheduled to run through Oct. 31, 2011. Navistar is Core Molding Technologies' largest customer, accounting for approximately 44 percent of the company's 2007 total revenue, and also is a significant stockholder, owning 9.8 percent of Core's outstanding common stock.