New machine shop in Orhangazi, Turkey increases Componenta's offering and brings more added value to customers

Press release 21.10.2008

New machine shop in Orhangazi, Turkey increases Componenta's offering and
brings more added value to customers 

Componenta, the second largest cast component supplier in Europe, offers the
whole supply chain of cast component to its customers. Cooperation with a
customer starts already in design phase, and after that Componenta casts,
machines, surface treats and pre-assembles the components delivering them
directly to customer's production line. 

Today Componenta has officially taken into use the Group's newest machine shop
in Orhangazi, Turkey. The new machine shop building was completed in 9 months
by July 2008 and installations of machines and equipment were made during the
past few months. In addition to the building investment of EUR 3 million,
machinery and associated equipment investment totalling EUR 2 million will be
done this year. An additional EUR 4 million machinery investments will be made
in next 2 years. With these investments, the machining capacity of the
Orhangazi Machine shop will increase 120% and come up to 240,000 machining
hours/year with the addition of 24 more machines. With the upcoming
investments, the current employee amount of Orhangazi Machine shop will
increase from 75 persons to 140 persons of professional machinists at the end
of the phase. 

The modern design of the Orhangazi machine shop is created by architect Peter
Butter, Studio Butter-Briceno Architects Ltd. Besides practical solutions and
conditions for everyday working, the building contains glass and light colours
which gives an elegant expression to the industrial premises and makes the
working environment well organized and inspiring. 

The machinery of the new plant consists of 5 CNC lathes and 20 CNC machining
centres of which 5 are installed in the last two months of 2008. Altogether,
Componenta's machine shops in Orhangazi, in Främmestad, Sweden, Lempäälä and
Pietarsaari in Finland, and Weert in the Netherlands and together with Manisa
machining operation for aluminium components, we are able to offer annually
total capacity of 750.000 CNC machining hours. The machine shops work as part
of one integrated value chain with the Group's foundries. Approximately one
quarter of the castings from Componenta's foundries are delivered to customers
as machined in the Group's machine shops. The components are often also painted
and pre-assembled by the machine shop. Today the global vehicle and machinery
manufacturers expect more added value from their suppliers. They demand not
just casting or machining, but ready solutions - everything from engineering to
surface treated, ready-to-install components that Componenta is able to supply.
Being able to offer the total chain improves Componenta's competitiveness in
the global market. 

Componenta is internationally operating Group of nine foundries, six machine
shops and one forge. During 90 years the Group has grown from a Finnish “one
man” company to the employer of 5,000 persons who work in the business units in
Finland, Turkey, the Netherlands and Sweden. In addition to the organic growth,
the Group has widened through acquisitions, of which the latest was in 2006
when Componenta acquired the Turkish foundry company Döktas. Today the renamed
Componenta Turkey is an integrated part of Componenta Group including a lot of
high capabilities and know-how of engineering, casting and machining. Heikki
Lehtonen, CEO and President of Componenta states that today Componenta - as a
one consistent Group - is a strong player and reliable partner in the cast
component market bringing added value to customers by offering them the whole
supply chain of cast components. 

Componenta's target is to become the leading European cast component supplier
by 2012. “The machine shop investment in Orhangazi is one step on our strategic
route towards this goal”, says Heikki Lehtonen. He continues that investment in
increasing machining capacity is also strongly in line with customer demand for
total solutions of components including casting, machining - and nowadays also
engineering made together with customers. 


Helsinki, 21 October 2008 

COMPONENTA CORPORATION


Heikki Lehtonen
President and CEO



Further information:

Heikki Lehtonen
President and CEO
tel. +358 10 403 00


For more information and photos, please visit www.componenta.com

 
Componenta is a metal sector company with international operations and
production plants located in Finland, Turkey, the Netherlands and Sweden. The
net sales of Componenta were EUR 635 million in 2007. The Group employs about
5,100 people. Componenta's shares are quoted on the OMX Nordic Exchange in
Helsinki. Componenta specializes in supplying cast and machined components and
total solutions made of them to its global customers who are manufacturers of
vehicles, machines and equipment. 
 
Componenta  Corporation 
Panuntie 4 
FI-00610 Helsinki , Finland
Tel. +358 10 403 00
Fax +358 10 403 2721
www.componenta.com