Dürr receives major contract worth $ 90 m from Harley-Davidson

11/08/2001

• Two new turnkey paint finishing systems in the US
• Strategic capital investment to increase production rate

The Dürr Technology Group has received a major contract worth US$ 90 m through its US operation Dürr Industries Inc., Plymouth / Michigan, from Harley-Davidson Motor Company, the leading manufacturer of heavy-weight motorcycles. Under this program, Dürr will design and build two new paint shops at the US operations Tomahawk / Wisconsin and York / Pennsylvania. Harley-Davidson is making these capital investments to increase production rates in view of growing demand, and in order to protect its competitive edge in the long term.

In Tomahawk, Dürr will be supplying a flexible paint finishing system including environmental equipment for the application of solvent-free powder and wet paint. Starting from May 2002, Harley-Davidson will be painting plastic and SMC parts for their entire model range.

In York, Dürr was not only put in charge of supplying a complete paint finishing system, but also of designing and building a 350,000 square foot factory building including logistics concept and administrative infrastructure as part of a major project planned by Harley-Davidson. According to the time schedule, Harley-Davidson's Softail series will be manufactured, painted and assembled in the new facility from late 2003 forward. For the paint shop Dürr will be supplying a systems solution for the entire process chain, including pretreatment, powder and wet paint application equipment plus conveyor and environmental systems.

"The order shows that capital investments to increase cost effectiveness still have priority in the US also. New, more efficient production systems will significantly help our customers to reduce costs", says Hans Dieter Pötsch, Chairman of the Board of Management of Dürr AG.

The Dürr Technology Group is one of the world's leading suppliers of production systems and manufacturing support services for the vehicle industry and its component suppliers. In the first nine months of the current fiscal year, Dürr increased sales by 22 % compared to the same period in the previous year to EUR 1,445 m (previous year EUR 1,183 m). Earnings before interest, taxes, depreciation and amortization (EBITDA) was up by 49 % in the same period to EUR 89.2 m (previous year EUR 59.8 m).