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October, 2004

ghoffman@gates.com

Gates corporation announces plan to exit the air springs business

Gates Corporation announced today its intention to exit the AirSprings business on a timetable that allows smooth transition for current AirSprings customers to other suppliers. This decision was made after careful analysis of the worldwide air springs market, the number of suppliers within that market, and the market’s potential for profitable growth.

“Exiting a market segment is never an easy decision” said Richard Bell, President of Gates Corporation, “but our analysis shows that the long term potential of the air springs market is no longer in line with our strategic focus.” 

The exit plan focus will be on working closely with our existing customers to assure an uninterrupted supply of quality product to them while Gates works with them to implement alternate sourcing. All new business development activities will cease immediately.  The division’s efforts will shift to finding a buyer for the business or develop and implement transition plans for current AirSprings customers.

Gates AirSprings Division currently operates a manufacturing facility in Lerma, Mexico, an assembly operation in Aachen, Germany, and engineering, product development and manufacturing operations in Denver, Colorado. Transition plans for affected employees in these facilities will be shared with the employees as they develop.

Gates is a diversified manufacturer of automotive and industrial products and system components. Gates is headquartered in Denver, Colorado with operations throughout the world and is a subsidiary of Tomkins plc.