| Fri 30 Mar 2001, 0:00 | | Tiwheel Reinforces Its Position In Global Alloy Wh |
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Tiger Wheels (TIWHEEL) has taken a number of key strategic steps designed to
reinforce its position as a strong - and growing - global player in the
manufacture and distribution of high-tech automotive alloy wheels, says joint
chairman and CEO, Eddie Keizan.
The most significant of these steps is that Siegfried Teichert, who has been
CEO of the 74 per cent-owned German ATS wheel group for the past 12 years, has
taken control of TIWHEEL's global wheel manufacturing operations - including
the rapidly improving Babelegi wheel plant in South Africa.
Keizan says management co-ordination of the group's wheel plants in Germany,
South Africa, Poland and, in the near future, the USA, is now vested in
Stahlschmidt & Maiworm ("S&M") Global Manufacturing Team - a specially created
co-ordination unit based in Germany.
Led by Teichert (56) - who has extensive experience in the European industrial
sector and is a past manufacturing and business consultant for, and partner in,
international accounting/management group Arthur Andersen - "S&M" houses the
highest levels of German and international wheel production technology.
Staffed by 1 600 people, TIWHEEL's German, Polish and South African plants
together produce 5,5-million wheels a year.
"Since around 75 per cent of the group's annual revenue is generated by alloy
wheel manufacture and distribution, the strategic importance of the creation of
the S&M Team under Teichert's leadership cannot be underestimated," says Keizan
Another strategic step is the appointment of Andreas Kolf to lead the
600 000-wheel-a-year plant project in the USA, where the first sod will be
turned during the next financial year.
"Kolf brought the state-of-the-art wheel plant in Poland from drawing board to
reality without a falter and his expertise and experience will be invaluable on
the USA project," says Keizan.
News of the enhanced integrated and co-ordinated structure in the wheel
manufacturing operations is accompanied by changes in the composition of the
TIWHEEL board to not only reflect the company's globalised status but also to
meet the requirements of the King Report on Corporate Governance in terms of
the balance between executive and non-executive directors.
Apart from Keizan, the executive directors on the reconstituted TIWHEEL board
are Siegfried Teichert, now in charge of global wheel manufacturing, Keith
Rivers (head of South African retail, Yokohama and global TSW aftermarket) and
a new, soon-to-be-announced group financial director to replace Mark Gardner,
who has taken over the running of the Babelegi plant.
They are counterbalanced by non-executive directors Martin Glatt (joint
chairman), Annette Stahlschmidt, Jacque Desmidt and Rainer Hagemann.
To facilitate the creation of the new-look, globally structured TIWHEEL board,
Eugene Couzyn, Mark Gardner and Dror Sery agreed to step down as directors of
the holding company, whilst continuing their executive positions in the group.
"With these new strategic developments, we have put in place a sound platform
for the future global growth of the TIWHEEL group," says Keizan.
"They have come at a time when TIWHEEL is poised to rebound from the earnings
setbacks associated with the problems which beset the commissioning of the
Babelegi wheel plant.
"So much so that, in spite of a drop from 32,6 cents to 15,3 cents a share in
headline earnings for the six months to 31 December 2000, full-year earnings
for 2000/2001 are expected to exceed the previous year's 90,1 cents a share,"
says Keizan.
"Babelegi has now turned the corner, thanks to the combined efforts of our
South African production team and the technical assistance of their German
colleagues. Together they have steadily ironed out the problems which delayed
the scheduled commissioning timetable.
"TIWHEEL now has a truly global management structure in place - for the first
time since we launched into the international arena in 1998 by way of the
acquisition of a 70,7 per cent holding in the German ATS group," Keizan
concludes.
Ends
From Greg Kukard - Investor Relations (Pty) Ltd
For further information/comment call Eddie Keizan at (011) 256-4444
or at 082 552 2627
