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October 27, 2000
Columbia, S.C. and Borgstena, Sweden:
CMI Industries, Inc. and AB Borgstena Textile, Ltd. announced today
that Borgstena Textile North America, a wholly owned subsidiary of AB Borgstena
Textile, located in Borgstena, Sweden, has purchased all of the assets of CMI's
Chatham Automotive Textile business in Elkin, N.C.
According to CMI's President and CEO Joseph L. Gorga, CMI and Borgstena
have been partners in their automotive operations since 1993, with the company
achieving significant growth in sales and market share in the North American OEM
automotive market. Mr. Ulf Ellwen, CEO of Borgstena remarked that the
acquisition of Chatham is a major step in Borgstena's strategy of providing
automotive textiles to its customers on a global basis. Borgstena is an
international company headquartered in Borgstena, Sweden and the company has
operations in Germany, Portugal, Brazil that, along with the North American
acquisition, positions the company as a leading provider of automotive textiles
in the world's largest markets. Borgstena also has joint manufacturing ventures
in Malaysia and South Korea and will continue Chatham's successful relationship
with Tatsumura Textile Co., Ltd. in Japan.
Borgstena will operate its North American subsidiary as Chatham
Borgstena Automotive Textiles and will continue to be located in Elkin, N.C. The
company's global customer base includes General Motors - Opel, Daimler Chrysler,
VW, Volvo, SAAB, Scania, Mitsubishi, Nissan, Toyota, Honda, Suzuki, Jaguar,
Rover, and Mazda.
Mr. Ellwen also noted that Mr. Jim Meek, currently Senior Vice
President of the Chatham Automotive Textiles business, will serve as
President-CEO of Chatham Borgstena Automotive Textiles. Borgstena also plans to
retain all of the current CMI associates affiliated with the automotive
business.
Mr. Gorga also noted that CMI will continue to operate the company's
Consumer Products Division, also located in Elkin, N.C., as it has done since
its acquisition in 1992. The consumer products business employs approximately
330 associates and produces blankets, mattress pads and related consumer
products for leading retailers and manufacturers.
CMI Industries, Inc., headquartered in Columbia, S.C., is a diversified
manufacturer of textile products serving a variety of markets, including home
furnishings, woven apparel, elasticized knit apparel, consumer products, and
industrial/medical markets.
AB Borgstena Textile, Inc., headquartered in Borgstena, Sweden is a
manufacturer of automotive textiles.
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For additional information contact:
A Michael Hopp
CMI Vice President of Human Resources
803-771-4434
James G. Meek, Jr.
President-CEO
Chatham Borgstena Automotive Textiles
336-526-0481
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