Southfield, MI -
GST AutoLeather ("GST") has acquired the assets of CUINBA ("Cueros Industrializados del Bajio, S.A. de C.V.") located in Leon, Guanajuato, Mexico. The acquisition is a natural extension of the strategic alliance the companies formed two years ago. As a part of the terms of the agreement GST will license the CUINBA name back to the former owners and will enter into a strategic supply agreement for the supply of Mexican hides to GST's retanning operations.
The acquisition of CUINBA is GST's latest step towards expanding its global reach and capability as well as becoming the "supplier of choice" for automotive leather trim to the worldwide automotive industry. During the last two years GST has relocated one-hundred percent of its manufacturing operations from the United States to Mexico and to China. Additionally, GST has announced the pending closure of its prior corporate offices in Hagerstown, Md. which is expected to take place in the fall of 2006. GST's new corporate offices are in Southfield, Michigan, strategically located close to all of North America's Original Equipment Manufacturers.
"CUINBA is a company GST has admired and respected for many years and ever since entering into our Strategic Supply Agreement in November 2004, the relationship between the two companies has continued to grow and mature. Now after two years of being partners, the next logical step is to combine our companies so that we can fully leverage the strengths of the both CUINBA and GST," said Dennis Hiller, president and CEO of GST AutoLeather.
In addition to world-class retanning, finishing, and cutting facilities, GST is obtaining an hourly and salaried workforce, 1100 strong, and a company with thirty-eight years of leather development and manufacturing expertise.
"The combination of CUINBA and GST further secures our strategy to be North America's low cost, highest quality, premier auto leather trim supplier," said Hiller. "Ever since I had the opportunity to meet and work with the management of CUINBA, I have been impressed with the depth of their team and the focus they have placed on their employees and especially CUINBA's commitment to training and education.
"I am especially delighted that CUINBA's owner Don Jorge Plasencia has agreed to stay on for a period of time as a special advisor which clearly demonstrates his solid support and belief that this acquisition is good for our two companies and our industry, added Hiller. "His experience with CUINBA and vast knowledge of the automotive leather industry will be critical to GST going forward."
About Cuinba (www.cuinba.com)
Cuinba is a privately owned company based in Leon, Mexico, and is one of the fastest growing automotive leather suppliers within the NAFTA region and China. Through its technology driven focus and strong people orientation, Cuinba has a proven track record of developing innovative and patented automotive leather products. The company has achieved a respected position among its automotive customers as a reliable, competitive, quality-oriented, full-service supplier. In support of its expansion plans and global growth strategy, Cuinba currently manages sales operations in the United States, Mexico, Germany, Spain, China and South America.
About GST AutoLeather (www.gstautoleather.com)
GST AutoLeather Inc. is headquartered in Southfield, Michigan, and is a proud supplier of some of the world's finest automotive leather. GST AutoLeather has operations and strategic alliances in the United States, Mexico, Dominican Republic, South America, Japan and China. Many of the industry's most prestigious automobile companies turn to GST AutoLeather for its innovation, customer service, quality and dependability. GST AutoLeather's engineers and technical experts work hand-in-hand with many of the world's Original Equipment and Tier I Manufacturers to conceive, design and develop new generations of leather for the global automotive market.