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Viasystems Announces Capital Investment and Capacity Expansion Plans

^{Published on 2010-09-16 13:55:42 - Market Wire}
 

ST. LOUIS--([ BUSINESS WIRE ])--Viasystems Group, Inc. (NASDAQ:VIAS) today announced plans to make investments to expand capacity and advance its technology to meet the growing demand for its printed circuit board (PCB) products in the various markets it serves.

"wea™re going to need to add capacity over the next two to three years to meet our customersa™ needs. We expect to fund our capacity expansion with the cash flow from operations and do not expect to increase our borrowing for these projects."

To meet the rapidly expanding technology and demand requirements of its broad customer base, Viasystems plans to invest up to $100 million in its printed circuit board manufacturing facilities over the next two to three years. Viasystems will invest the $100 million in increments to insure that it continues to respond to dynamic market demands.

aIf our markets continue to be as vibrant as they have been for the last nine months,a said David M. Sindelar, Chief Executive Officer of Viasystems, awea™re going to need to add capacity over the next two to three years to meet our customersa™ needs. We expect to fund our capacity expansion with the cash flow from operations and do not expect to increase our borrowing for these projects.a

The initial investment of between $20 and $30 million has begun and will continue to be deployed over the next six months. The initial investment will (i) bolster Viasystemsa™ technological capabilities for high density interconnect technology and thermal management solutions, (ii) expand Viasystemsa™ overall production capacity and (iii) continue to enhance Viasystemsa™ wastewater treatment and water recycling capacity in response to the increased production volume and in the interest of continuing to protect the environment.

Forward Looking Statements

Certain statements in this communication may constitute aforward-looking statementsa within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of the current beliefs, expectations and assumptions of the management of Viasystems regarding future events and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Viasystems undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Actual results may differ materially from those expressed or implied. Such differences may result from a variety of factors, including but not limited to: legal or regulatory proceedings; any actions taken by the Company, including but not limited to, restructuring or strategic initiatives (including capital investments or asset acquisitions or dispositions); or developments beyond the Companya™s control, including but not limited to, changes in domestic or global economic conditions, competitive conditions and consumer preferences, adverse weather conditions or natural disasters, health concerns, international, political or military developments, and technological developments. Additional factors that may cause results to differ materially from those described in the forward-looking statements are set forth under the heading aItem 1A. Risk Factors,a in the annual report on form 10-K filed by Viasystems with the SEC on February25, 2010 and in Viasystemsa™ other filings made from time to time with the SEC and available at the SECa™s website, [ www.sec.gov ].

About Viasystems

Viasystems Group, Inc. is a technology leader and a worldwide provider of complex, multi-layer printed circuit boards (PCBs) and electro-mechanical solutions (E-M Solutions). Its PCBs serve as the aelectronic backbonea of electronic equipment, and its E-M Solutions products and services integrate PCBs and other components into electronic equipment, including metal enclosures, cabinets, racks and sub-racks, backplanes, cable assemblies and bus bars. Viasystemsa™ 15,000 employees around the world serve more than 800 customers in the automotive, industrial and instrumentation, telecom, computer/datacom and military/aerospace end markets. For additional information about Viasystems, please visit the Companya™s website at [ www.viasystems.com ].