PACCAR announces new manufacturing and assembly facility

10 January 2007

Mumbai: Commercial vehicles maker, PACCAR Inc (Nasdaq: PACR), the 489th largest public company in the world, has unveiled plans for a new $400 million powertrain manufacturing and assembly facility in the US. Construction of the facility will begin in mid-2007 and is targeted for completion in 2009.

"This significant investment in a new powertrain facility, as well as a technology centre, will ensure that PACCAR maintains its position of global technology leadership and meets customer requirements," said Mark Pigott, chairman and chief executive officer.

PACCAR is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. It also provides financial services and information technology and distributes truck parts related to its principal business. PACCAR's technology centre is due to open in 2009.

On the new plant, Piggott says, "The 400,000-square-foot facility strengthens PACCAR's global manufacturing and assembly capability and positions PACCAR to capitalise on growing opportunities in North America, Europe and Asia,"

"The $400 million investment in PACCAR's newest facility complements the $2.5 billion invested over the last ten years to accelerate award-winning product development, Six Sigma implementation, customer after sales support and dynamic information technology programs in our capital goods and financial services markets," added Pigott.

PACCAR earned a record $1.1 billion on revenues of $12.2 billion in the first nine months of 2006 and over the last 10 years has consistently achieved a 22-per cent compound annual growth rate (CAGR) of earnings per share, posting total shareholder returns averaging 25.4 per cent per year, versus 8.4 per cent annual return for the Standard & Poor's 500 Index over for the last decade.