20 April 2001
20 April 2001
ADS Inc has reached an agreement with Volvo Bus North America through which ADS will become responsible for the operation of a composite materials plant in Mexico belonging to Volvo Bus de Mexico, a division of Volvo Bus.
In addition, the agreement will see ADS acquire the production assets of the plant in early 2002. The transaction is subject to certain conditions, which include the level of profitability for the facility in question. The plant manufactures composite materials used in the assembly of buses, employs 150 workers and records sales in excess of $4 million per year. Volvo Bus of Mexico assembles some 2,500 buses annually.
""For ADS, this agreement represents a significant penetration of a market experiencing enormous growth,"" said Paul Drouin, President and Chief Executive Officer of ADS. ""By gaining a foothold in Mexico, ADS is obtaining strategic access to new markets in both Latin America and the United States. We intend to significantly develop our level of business activity in these markets over the coming years."" Following its acquisition of the Volvo Bus of Mexico plant, ADS will also be in a position to transfer leading-edge technologies to Mexico to increase the company's competitive advantage in its newly targeted markets.
""This agreement is very much aligned to our development strategy, which is focused on making ADS a North American leader in the manufacturing of composite materials used in bus assemblies,"" added Guy Drouin, the President and Chief Operating Officer of ADS.
ADS is headquartered in the Beauce region, near Quebec City, and through its subsidiaries is primarily involved in the manufacturing of technical textiles and composite materials.