Brose Group raises investments to 170 million euro

Berlin/Coburg (August 6, 2004). At their interim meeting in Berlin in late July, the shareholders and advisory council of the Brose Group decided to raise investment for the 2004 tax year from 145 million to 170 million euro in the interest of the company’s continuing international expansion. The shareholders also decided to reinvest 90 per cent of annual net profits. “By once again distributing low dividends, we will be able to finance current investments out of equity,” said President and CEO Michael Stoschek.

For the first time, the shareholders and advisory council held their quarterly meeting at the Brose Group’s conference centre on Potsdamer Platz in Berlin. This new location in Germany’s capital serves as a reminder of the company’s founder, Max Brose, who set up business in Berlin in 1908.

Some 50 per cent of the 170 million euro are to be invested outside Germany in 2004, primarily to finance new production facilities, production plant and logistics, but also to expand the company’s global information technology system. Brose is currently constructing four new production lines in North America, Asia and Europe, in addition to new offices in Detroit, USA.

Brose is also poised to open another factory in Germany. Based near Sindelfingen, this will start producing door systems for the new S-Class from DaimlerChrysler in 2005. A major part of the investment in Germany will go towards modernising and expanding the Wuppertal site.

The Brose Group workforce rose by 350 to 7,780 in the first six months of the year. The group employs 6,360 people at its 14 European locations, 930 in North and South America and 490 in Asia and Africa.

Press contact:
Christian Treinies
Telefon: +49 9561 21 2332
Fax: +49 9561 21 1704
E-mail: christian.treinies@brose.net