Thanks to the planned adjustments to existing installations, Opel Belgium will be in a position to assemble two models in one plant under the present shift system.

New opportunities for suppliers

In addition to this investment, Opel Belgium also wishes to further expand its SILS (Supply In Line Sequence) activities. The positive experience gained with the SILS centre, which currently already supplies the adjacent plant with a number of components such as refrigerant modules and bumpers in production sequence, is encouraging Opel Belgium to expand these activities further. To ensure future flexibility with models, Opel Belgium will continue inviting suppliers to locate their final assembly as near the plant as possible. In this way, the logistical costs per car produced can be reduced, and the quality of the parts supplied can be increased. Without a doubt, this decision will lead to additional jobs in the Antwerp area.

The agreement covers a phased delivery of 110 units during the later part of 1999 and a six year Contract Maintenance agreement with the Volvo dealer network throughout Malaysia. An option for another 80 units to be taken up during the early part of year 2000 is also included in the agreement.

The CKD units will be assembled in the Swedish Motor Assembly factory in Sha Alam Malaysia. Some components will be supplied locally. "Kontena National is a high profile, well managed company and this prestigous order confirms Kontena National's confidence in the Volvo FM truck, which represents leading edge -technology and productivity, ensuring maximum customer competiveness. This is a fantastic kick-off for the new FM truck, which is due to be introduced to the Malaysian market" said Mr Norman McIlwraith, Managing Director of Volvo East Asia - Trucks.

This signing is a continuation of a series of strategic documents and agreements which began with a visit to Moscow by Jacques Nasser, President and CEO, Ford Motor Company and following the investment agreement signed with the Ministry of Economics on July 8, 1999.

Ford will create a Closed Joint Stock company in Russia, in which the partners will be Ford Motor Company and the Bankers House – St Petersburg. The new company will be called Ford Vsevolozhsk, which will convert an existing defense facility, formerly operated by Russki Diesel, into a world-class automotive manufacturing plant. The facility will be in Vsevolozhsk, which is located close to St Petersburg in the Leningrad Oblast. The investment agreement will operate in compliance with the Law on Investment Activity in Leningrad Oblast. Under this law, attractive tax incentives are offered to companies investing in the region until they have recovered their initial investments.

Commenting on the agreement, Alain Batty, President of Ford Russia and CIS, said, "We are very pleased to sign today this agreement with the Leningrad Oblast Government. I would like to thank all our colleagues from the Governmental authorities of Leningrad Oblast for the continuous support and encouragement throughout the development of the project. As the first priority, we will create a manufacturing facility which exhibits the best environmental standards, and we will recruit the best Russian talents to make this project a success with a confidence that people will see Ford as a great company to work for. In time, Ford will play a significant part in the development of a globally competitive automotive supplier base in Russia. We're excited by the prospects to be part of business community in Leningrad Oblast."

The first phase of the proposed business plan calls for an investment of $150 million with initial output of 25,000 vehicles and potential capacity to produce 100,000 units annually in line with market demand. The plant will include body construction, paint facility and final assembly; it is expected to become fully operational during the first half of 2001. It will produce passenger cars based on Ford's modern Focus platform.