Released on July 30, 2008

Grede Foundries Inc., Milwaukee, announced it has secured a $45 million order to produce heavy truck axle castings for export to Daimler Truck’s assembly plants in Germany.

The castings will be produced at Grede’s plants in Reedsburg, Wis., New Castle, Ind., and St. Cloud, Minn. The company said its Milwaukee-based metalcasting facility also anticipates finalizing another $20 million in sales to European customers in the coming weeks. The contracts represent a significant portion of Grede’s approximate $500 million annual sales.

“The opportunity to export profitably couldn’t come at a better time,” said Bruce Jacobs, Grede president and CEO. “The new Daimler work will help fill open capacity at our plants, and our hope is that additional export work fills some of the gaps at our other plants.”

Grede reports that its raw materials and energy costs have increased approximately 40% in recent months. The company has had to downsize some of its operations and employment in response.

“It’s been a difficult time for everyone in our industry,” Jacobs said. “Europe, due in part to the favorable current exchange rates and a shortage of [metalcasting] capacity there, represents an important opportunity for Grede Foundries.”

Grede produces ferrous castings out of eight U.S.-based metalcasting facilities for the automotive, heavy truck, appliance and industrial markets.