Martinrea International Inc. Business Report FY ended Dec. 31, 2009 - FY ended Dec. 31, 2010

Business Highlights


-On February 27, 2009, the Company completed the acquisition of certain assets of the SKD Automotive Group including a facility in Jonesville, Michigan and a facility in Mexico City, Mexico. Customers of metal forming products including Ford, Honda, Chrysler, General Motors and Volkswagen.


-In December 2010, a facility in Mississauga, Ontario was closed.
-In June 2010, the Kitchener Frame plant, closed in 2009, was sold.
-In June 2010, Windsor, Ontario facility was closed.


-Metallic work for Ford CD4 program in Oakville, Ontario and Hermosillo, Mexico
-Metallic work for the Ford "Escape" and Ford "Transit" programs
-Metallic assemblies and fuel and brake work for the GM small car program
-Metallic work for BMW "X5" vehicle platform
-Rear twist axle assembly for Fiat "500" and the new Chrysler sub-compact
-Capless fuelling system for the next generation Chrysler LX program
-Metallic work for Honda, VW, and Nissan

-As part of the SKD acquisition, the Company added Honda as a customer, and added work from Volkswagen and Toyota. The Company also won work from Fiat, Volkswagen, and Hyundai in 2009, as well as new product mandates from Nissan, Chrysler, GM and Ford.
-The first fuel and brake line award in Europe on GM's new global small car program; -Metallic awards for Volkswagen's new Tennessee facility
-Replacement and new metallic assemblies on the Ford "Fusion" program
-New front and rear cradles for GM's luxury car program and front cradles for GM's mid size car program
-New hot stamping awards for a variety of customers
-New welded assemblies and cross members for GM programs
-The Company's first awards from Fiat, including fuel fillers and control arms for the Fiat 500 to be produced in Mexico
-Fuel fillers for the Hyundai "Sonata"
-Fuel and brake bundles for the Ford small car program, as well as many stampings and welded assemblies for the same program


R&D Expenditure

(in million Canadian dollars)
Total 7.7

R&D Facilities

-The Company has technical center focused on research and development in Manchester (MI).

Technological Alliance

Hydrogen Generating System (HGS)
-In February 2005, the Company and Hy-Drive Technologies Ltd., a hydrogen-based energy and power technology firm, announced that they have signed a license agreement under which the companies will jointly develop an automotive Hydrogen Generating System (HGS) for automobiles and light trucks based on proprietary, patented technology developed by Hy-Drive and its predecessor company. The HGS generates and injects small amounts of hydrogen gas into the combustion chamber of a regular internal combustion engine creating an enriched air mixture and a more complete and faster burn of the air-fuel mixture. Based on Hy-Drive's extensive testing and trials conducted to date on a wide variety of internal combustion engines, Hy-Drive's HGS has demonstrated substantial enhancements in performance in terms of fuel savings and reducing carbon monoxide, nitrous oxide and particulate matter. The two companies will focus on modifying Hy-Drive's existing HGS, which will include reducing the size of the system for the automotive market. Under the terms of the agreement, the Company was granted the exclusive worldwide license for the development of Hy-Drive's technology for the automotive industry.

Proprietary technologies
-The Company's proprietary technologies include ESC (high performance composite Engineered Structural Components) and the tubing product families of P-CAPR (Pilot Conductive Anti-Permeation), E-P-CAPR (Elastomeric Pilot Conductive Anti-Permeation) and P-TECR; ZLTR (Zero Leak Technology high pressure fittings); and certain approaches to hydroforming, space frame manufacturing, and utilization of a vehicle's frame for fluid storage.

Investment Activities

Capital Expenditures

(in million of Canadian dollars)
  FY2010 FY2009
Overall 90.9 51.4

-Building expansions at Jonesville, Michigan, Springfield, Tennessee, Tupelo, Mississippi and the Company's Saltillo, Ramos and Hermosillo facilities in Mexico,
-Purchase of new program equipment in response to newly awarded business scheduled to launch over the next two years
-A new plant the Company will be opening in Silao, Mexico during 2011

-Acquisition of equipment from SKD Automotive Group : 12.8 million dollars
-Equipment for new programs: 38.6 million dollars
-The acquisition of SKD involved acquisitions of a plant in Mexico City, Mexico and Jonesville, Michigan in the first quarter of 2009, along with the related business; and the takeover of SKD’s work in Canada along with the related equipment necessary to produce the work. The SKD work was moved into certain of its facilities in Canada and the United States.
-Opened a new assembly facility in Ajax, Ontario, which commenced production of assemblies for the Chevrolet Camaro program in early 2009.
-Commenced production in its Slovakia facility in 2009
-Opened a facility in Tillsonburg, Ontario to perform work obtained in the SKD transaction.
-Proceeded with facility expansion plans in Tennessee, Mississippi and Mexico.