Press Release
For Immediate Release: Sept. 29, 2003 Contact: Peter McElroy mcelrop@keysafetyinc.com 248-449-4104
KEY SAFETY SYSTEMS FORMS SHANGHAI JOINT VENTURE
Sterling Heights, Mich., April 30, 2004 — Key Safety Systems, Inc.—a leader in global automotive safety systems and components, today announced the formation of a new joint venture with Yanfeng Visteon Automotive Trim Systems Company, Ltd., based in Shanghai, China. With 2004 revenues expected to exceed $1 billion, Yanfeng Visteon is the largest interior trim manufacturer in China, and one of the largest producers of steering wheels. Located Southeast of Shanghai, the new partnership is called Yanfeng Key Automotive Safety Systems Company, Ltd. “The JV with Yanfeng Visteon represents our continuing commitment to the Chinese market and the Asia-Pacific region as a whole,” said B. Edward Ewing, Chairman and Chief Executive Officer of Key Safety Systems, Inc. “We have the ability to design, develop, test and supply a wide range of active and passive safety system products throughout China and other parts of the AsiaPacific region. I am very honored to partner with Yanfeng Visteon and have great expectations for the future of the combined companies.” Ewing continued, “This partnership continues Key Safety Systems aggressive actions to implement a global footprint in manufacturing and engineering which ensures world-class cost competitiveness and customer support. We expect additional actions to expand our rapidly growing presence in Asian markets. This JV, together with our existing Asian operations, will grow our total revenue in Asia from over $150 million in 2004 to approximately $500 million in 2008.” The joint-venture announcement represents the latest stage of the long-term plan set in motion when Carlyle Management Group acquired Key Safety Systems through its Key Automotive Group affiliate in 2003. That plan has focused on continuous cost improvement, financial stability, improved quality, delivery and customer responsiveness and strategic revenue growth. The results of actions during the first year of ownership are significant. The primary industry quality rating of parts-per-million (PPM) improved over 67% to primary OEM customers and on-time delivery levels improved from 96% to 98% and continue to climb and over $100 million in cost improvements has been achieved to date. “While our early results are significant, it is only the beginning. We are in the embryonic phase of our long-term plan and remain committed to taking whatever actions necessary to position us with a globally competitive edge. It is my vision to get our employees, customers, suppliers and shareholders to say we are a great management team, “ stated Ewing. Customer response to the improved performance is evident with Key Safety Systems being awarded new business contracts valued over $800 million since acquisition, solidifying the company’s place as one of the premier safety system integrators. The joint venture with Yanfeng Visteon continues this trend of growth. Jason Luo, President of Key Safety Systems Asian Operations states, “Along with our partner Yanfeng Visteon, we have already been sourced several programs and identified many additional safety systems opportunities with customers in China. This joint-venture establishes Key Safety Systems’ as a true global supplier of world class safety products and services.” Initial products to be produced by the joint venture include airbag modules and systems, steering wheels and shift knobs. Additional offerings may expand to the production of other safety system components such as seat belts. The venture includes the construction of a new 100,000 sq. ft. technical center with full vehicle crash test sled, as well as airbag and steering wheel prototyping, design and development capabilities.
About Key Safety Systems Key Safety Systems Inc., a Key Automotive Group-affiliated company since April 2003, is a leading global designer and manufacturer of safety-critical components and systems including airbags, seat belts and steering wheels. Key Safety Systems’ products are used in more than 300 vehicle models produced by over 45 automobile manufacturers worldwide. Key Safety Systems' global reach comprises 32 manufacturing, technical and sales facilities in 12 countries generating over $ 1 billion in sales and employing more than 10,000 people. The company currently has two sales offices in China and another joint venture in Tianjin, China. The Key Automotive Group of companies is an affiliation of premier suppliers of components and systems to the global automotive industry. Established in 2002 by the Carlyle Management Group, the Key Automotive Group companies generate more than $1.6 billion in sales and employ more than 14,000 employees in state-of-the-art technical and manufacturing facilities in 15 countries in North America, Europe and Asia.