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Huntsville, Alabama-based Wolverine Tube (NYSE: WLV) reported Wednesday plans to open a manufacturing facility for investment of US$5mn in the Monterrey area of northern Mexico's Nuevo León state.
The new plant will produce both value-added products and technical tubes in a 12,000 sq. m. leased building, the company said in a statement. Of the initial US$5mn investment, US$3mn is in the form of existing equipment that is being redeployed.
This will be Wolverine's first operation in Mexico and the location provides potential growth opportunities to serve other Latin American markets, company CEO Dennis Horowitz said.
Production will begin in early 2005. The company expects to employ 100 people by the first quarter of next year.
The Mexico investments are expected to have a slightly negative impact on Wolverine's fourth quarter in 2004 and be accretive in the full year 2005. The company remains within its capital investment target of US$10.5mn-12mn for 2004, including the Mexico venture.
Wolverine Tube provides copper and copper alloy tubes, fabricated products and metal joining products, as well as copper and copper alloy rod, bar and other products.