MAG's global automotive business achieves record growth

* Significant growth rates, bookings and backlog cap a year of extraordinary achievements
* Manufacturing technology provider participates strongly in Asian markets and secures new projects jointly engineered and produced in the Americas, Europe and Asia
* Innovative machining features foster technology leadership

Göppingen, February 6, 2012 - MAG IAS, LLC (MAG Americas) and MAG Europe GmbH (MAG Europe) ended 2011 with a strong close and backlogs which stretch to 2013 in the companies' key automotive segment. Order intake amounted to Mio.$ 834 (Mio.€ 607), marking a record increase of 90 per cent (2010: Mio.$ 438 / Mio.€ 318 ). The results include a significant amount of business in the fast growing markets of China and India with more than two thirds of orders coming from these countries. Dr. Sebastian Schöning, Global President Automotive at MAG, said: "During the last five years, we expanded our automotive business activities significantly, partnering with OEMs from traditional and emerging markets. I am pleased that we were able to foster existing customer relations and at the same time win new, promising key customers. In Asia for example, we provided highly productive manufacturing technology to local OEMs as well as to European and American manufacturers setting up new facilities in the region."

Among the major orders from China in 2011 were two manufacturing lines for SGM Wuling (SGMW) with a total of 115 CNC machines from MAG's XS series. All cylinder heads, crankcases and most crankshafts for Wuling's top seller "Sunshine" (ranking third in the Forbes list of best-selling cars) are being produced on MAG systems. The latest orders are the 7th and 8th MAG manufacturing lines for SGMW and will be installed in the company's facilities in Liuzhou and Qingdao.

In addition to supplying three agile manufacturing systems to German facilities for Mercedes A, B and C class engine production in 2011, MAG was chosen to contribute to the brand's globalization into China. BBAC (Beijing Benz Automotive Corporation), a joint venture of Daimler AG with BAIC, one of China's leading automotive manufacturers, ordered a manufacturing line from MAG for cylinder block production.

Another notable project in China is with Changan Automobile Co. Ltd. which has placed four cylinder block lines and four turn-key crankshaft systems with MAG Automotive Europe representing a volume of Mio. $ 220 (Mio. € 160). "We are especially proud of these projects with Changan, one of the fastest growing Chinese tigers. The customer's complete satisfaction with our project execution is evidenced by repeat orders for MAG globally," said Dr. Manfred Berger, President MAG Automotive Europe. "The customer's continuing trust in MAG has been shown as the joint venture Changan-Ford-Mazda recently placed a new cylinder head line with MAG Automotive Americas and the crankshaft system with MAG Automotive Europe."

In addition, several new projects are in the final stages of simultaneous engineering and exemplify the close working relationships and global resources MAG is able to offer its customers. For example, Tata Cummins Limited has been working closely with MAG globally on several production systems for Mid Range heads and blocks at both the Jamshedpur and Phaltan, India sites.

Production solutions for these examples and many other major programs have been developed utilizing joint processing and engineering teams from MAG's facilities in Europe, North America and Asia. "We are very fortunate to be reaping the benefits of our investments in products, facilities, engineering and a worldwide support network," said Brian Prina, President MAG Automotive in Americas. "Our customers in the automotive and truck market expect us to manage projects globally, from the initial proposal through the installation. Technical solutions and buying decisions occur from multiple regions on any given project. MAG Automotive has continued to manage, secure and deliver solutions globally. Our talented people have performed admirably with the focus and commitment needed to earn the trust of our customers as the automotive market has recovered. Our automotive team also guided strategic investments in new technology to produce the next generation of vehicles with concepts that perfectly match our customers' needs for modular, low cost, global machine platforms."

In 2011, MAG introduced several new technology features designed to match automotive OEM requirements. The latest generation SPECHT(r) family, which was introduced in 2007, has been completed by the new dual-spindle SPECHT 450 DUO, for the increasing volume in an engine downsizing OEM market. A newly developed cryogenic cooling system using liquid nitrogen enables dramatically higher cutting speeds for increased metal removal, longer tool life or a blend of the two advantages. Applying a unique through-the-tool design, MAG has achieved promising test results machining cast iron and CGI cylinder crankcases with liquid nitrogen. The unprecedented success of the cryogenic development program has been the result of ongoing technology transfer and sharing of best practices by MAG's business teams in Europe and the Americas. Also through having integrated honing capabilities in CNC machining centers and hardfine milling technology on crankshaft turning centers (a substitution for several grinding operations), MAG can now contribute significantly to reduce manufacturers' investment and processing costs, while improving parts quality.

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Left to right: Dr. Manfred Berger President MAG Automotive Europe, Dr. Sebastian Schöning, Global President MAG Automotive and Brian Prina, President MAG Automotive Americas
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About MAG
MAG is a leading machine tool and systems company serving the durable goods industry worldwide with complete manufacturing solutions for metal cutting and composites applications. With a strong foundation based upon renowned brands such as Boehringer, Cincinnati, Cross & Trecker, Ex-Cell-O, Fadal, Forest Liné, Giddings & Lewis, Hessapp, Honsberg, Hüller Hille, Lamb, Modul and Witzig & Frank, MAG is recognized as the preeminent provider of tailored production solutions based on state-of-the-art technology. Key industrial markets served include aerospace, automotive and truck, heavy equipment, oil and gas, rail, solar energy, wind turbine production and general machining.
With manufacturing and support operations strategically located worldwide, MAG offers comprehensive lines of equipment and technologies including turning, milling, hobbing, grinding, honing, systems integration, composites processing, maintenance, automation and software, tooling and fluids, and core components.
For more information about MAG, please visit: www.mag-ias.com

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