Wednsday,May 24th 1999

Continuing with its Plan for Internationalisation and its policy regarding the Transfer of Technology, the co-operative enterprise IRIZAR based in Ormaiztegi, has just set up the company IRIZAR MEXICO. This company, with 100% of the capital provided by IRIZAR, joins the three other companies already operating on the international stage:

• In China, IRIZAR TIANJIN, since 1995.
• In Morocco, IRIZAR MAGHREB, since 1997.
• In Brazil, IRIZAR BRASIL, since 1998.

These four companies, together with the parent company in Ormaiztegi and other companies, in which it has a holding, make up the IRIZAR GROUP. This year the Group forecasts a turnover of 30,500 million pesetas, an increase of 37% on 1998, a year in which sales increased by 50% compared to the previous year.

IRIZAR MEXICO: INVESTMENT OF 2,000 MILLION PESETAS

Total investment in the Mexican project accounts for close to 2,000 million pesetas and will be provided 100% by IRIZAR. Production is scheduled to begin at the end of 1999.

Initially, the company will occupy 60,000 m2 of land in the Bernardo Quintana Industrial Estate in QUERETARO, of which 7,000 m2 will be built on by September this year.
The product to be manufactured by IRIZAR MEXICO will be the IRIZAR CENTURY and the IRIZAR INTERCENTURY coaches, leaders in the long- and middle-distance coach sector in Europe.
In an initial phase, the installed capacity of the plant will be two units a day, to progressively increase to four units/day.

From Querétaro, the domestic Mexican market will be tackled, with a 20% market share forecast for the third year of operation of the company.

In a second phase, it is planned to us the Querétaro plant as a platform for exports to other countries in the region, especially USA and Canada, taking advantage of the commercial opportunities offered by the North American Free Trade Agreement (NAFTA).

It is worth recalling that in 1998, the company's first year in the difficult US market, IRIZAR sold 60 coaches. The target for this year is 120.

TURNOVER AND EMPLOYMENT

IRIZAR MEXICO forecasts a turnover of around 7,000 million pesetas for its third year of operation.
Initially, the workforce will total 100 people. This figure will increase to 300 over the first three years. Indirect employment for another 80 people will also be created in the Querétaro area.

As far as the Transfer of Technology is concerned, training will be given to all the IRIZAR MEXICO workforce at IRIZAR's installations in Ormaiztegi. In this way, they will gain first hand experience of the techniques and working methods that they will subsequently apply in IRIZAR MEXICO.

QUERETARO INDUSTRIAL ESTATE

The Industrial Estate in Querétaro, where the IRIZAR MEXICO plant is going to be built, is located just 200 kilometres from Mexico City, next to the main highways and communication routes linking the federal capital with the USA.

The State of Querétaro has a population of 1.4 million people and is well known for its long industrial tradition and the extensive educational and training facilities available, in both the university and technical-professional fields.

On a more strictly business level, the number of fully equipped industrial estates stands out, as does the number of skilled suppliers available, operating mainly in the automotive sector.