Dürr Wins Major Contract from Renault

11/21/2000

• Top-notch performance levels in terms of uptime reliability and first-run rates with environmentally sustainable processes
• Successful integration of the French competitor, Alstom Automation

The Dürr Technological Group, Stuttgart, has won a major contract through its French subsidiary Dürr-AIS S.A., Paris, from the French car manufacturer Renault totaling about DM 63 m (euro 32 m) for the delivery of an environmentally sustainable paint shop at its Spanish operation in Palencia. Quite recently, Peugeot Citroen had also awarded a large-volume contract to Dürr.

"The second major contract won by Dürr-AIS within just a few months shows that we have achieved our strategic goal of improving our access to the French automotive industry. By gaining a foothold in this market, Dürr's Paint Systems business unit is able to further enhance its position as a global leader in this area" says Hans Dieter Pötsch, Chairman of the Board of Management of the Dürr AG.

The contract awarded to Dürr-AIS (previously Alstom Automation) encompasses the initial concept planning, design, engineering and construction of a paint shop for a production rate of 1.100 bodies per day, using environmentally sustainable water-based paints. By international standards, the painting system achieves top-notch performance levels in terms of uptime reliability and first-run rates; start of production is scheduled for early 2002. The line is designed for bodies of the Megane series and its successors and also for the integrated painting of pertaining trim parts in 24 colors.

Dürr-AIS is the leading supplier of mass production painting systems to the French automotive industry and has a strong standing in the world market as provider of systems for high-quality painting of plastic components. This market segment is enjoying very high growth rates compared to other sectors.

Last year, Dürr bought a 50 percent stake in Alstom Automation from the French Alstom Group, and took over management responsibilities. Full acquisition of the company, that is again operating under its former brand name Air Industrie Systems (AIS) is scheduled for spring 2001.

The Dürr technological group is one of the world's leading manufacturers of production systems and manufacturing support services for the automotive industry and its component suppliers. Five business units: Paint Systems, Automotion, Environmental, Protecs and Services operate under the aegis of the strategic management holding company Dürr AG, with operations in over 20 countries around the globe. For the fiscal year 2000, Dürr AG is expecting sales of euro 1.7 bn and a double-digit growth rate.