From Detroit of the US to Hemaraj’s Detroit of the East

American Axle & Manufacturing Holdings, Inc., (AAM) top US maker of highly engineered driveline products, and Hemaraj Land And Development Plc., Thailand’s leading developer of industrial estates, utilities and property, announced the signing of a contract for the purchase of 51 rai at Hemaraj’s latest industrial estate, Hemaraj Eastern Seaboard Industrial Estate (Hemaraj ESIE) in Rayong. AAM will use the land to establish its state-of-the-art manufacturing plant in Southeast Asia, scheduled to become operational in 2009.

Headquartered in Detroit, Michigan, and traded on the New York Stock Exchange as AXL, AAM is a world leader in the manufacture, design and validation of driveline and chassis systems and related components for trucks, sport utility vehicles and passenger cars. Its decision to set up a production base in Thailand not only represents the company’s significant expansion of its manufacturing footprint in one of Asia’s important economies, but also underlines the confidence it has in Thailand and the excellent infrastructure and services Hemaraj ESIE has to offer.

Hemaraj ESIE is the second auto cluster under Hemaraj’s successful “Detroit of the East” concept. Known as Detroit of the East II, Hemaraj ESIE is located right next to the Eastern Seaboard Industrial Estate (ESIE) where over 120 world-class automotive part manufacturers are operational. Currently the 2 industrial estates are connected with a high quality internal road ensuring the uninterrupted supply line between them.

“Our new facility in Thailand will be strategically located in close proximity to key seaports and will enjoy excellent geographical access to several world leaders in vehicle manufacturing, many of whom have already chosen to establish their production facilities in Hemaraj ESIE. We are essentially continuing to extend our manufacturing capacity and capability throughout Asia,” said AAM Co-Founder, Chairman & CEO, Richard E. Dauch.

According to Mr. David Nardone, President & CEO of Hemaraj Land And Development Plc., “The move clearly reflects foreign investors’ confidence in Thailand’s strong economic fundamentals and reaffirms Hemaraj’s status as one of the most strategically important drivers in the development of the local automotive industry.”

He adds that apart from the firm commitment to build and operate high quality infrastructure for customers. Hemaraj has recently launched a major initiative in partnership with the Ministries of Labour and Education to set up a comprehensive skill training and development centre for workers in the automotive industry in Hemaraj’s Eastern Seaboard Industrial Estate (Rayong). The facility aims to boost skills and knowledge of those already in employment and those about to enter the car manufacturing sector to ensure that their qualifications match the requirements of the industry.

“We are looking forward to working closely with ESIE’s skill training and development centre in the near future,” says Dauch. “As a respectable corporate citizen worldwide, we are committed to making positive contribution to Thailand’s industrial development and the Thai government’s policy of creating employment opportunities for people in local communities.”

AAM’s current Asia operations include a manufacturing facility in Changshu, China along with business and engineering offices in Tokyo, Japan; Shanghai, China; Pune, India; and Seoul, South Korea.