Following the recent Press Releases about Tupy, can you compare the current status to the indications made in the Tupy presentation at the SinterCast Annual Shareholder meeting on 20 April 2004?


Shareholder, name withheld

During the 20 April AGM, Mr Fernando de Rizzo, Executive Vice President of Sales and Marketing at Tupy stated:

“The relationship with SinterCast has been very fruitful. As of today, we have six different projects under development in the foundry or in commercial discussions with customers in either Europe or Asia, for commercial vehicles and passenger cars. We expect to publish the six new business opportunities we have under development or discussion until the end of this year, once these customers give us the allowance to publish to the media.”

He also stated that:

“Because of the successful response from the Customers about CGI and the current products we have in development and to provide us more versatility, Tupy has decided to buy a new System 2000 to put in our Maua facility in Sao Paulo. Doing that, we will have the capability to produce CGI in Joinville and Maua as well.”

As many of our shareholders know, Maua is Tupy’s foundry for commercial vehicle components.

Today, eight months after the presentation, we have publicly announced four of the six programs that Fernando referred to, namely:

  • A new CGI engine for Ford’s Premier Automotive Group (PAG), referred to in SinterCast’s 15 November Interim Report
  • The Toyota Racing Development V8, that provides a showcase for the technical limits of CGI and a first SinterCast-CGI reference within the Toyota Group
  • The high volume Audi 3.0 litre V6 with foundry production start during August 2004
  • The high volume Audi 2.7 litre V6 with foundry production start during early-2005

Although we have not yet been able to announce a commercial vehicle series production program, the commitment from Tupy to purchase a new System 2000 for their commercial vehicle foundry located in Maua (approximately 500 km from the main Joinville foundry) clearly shows that the commercial vehicle programs are active. Indeed, in the 16 December Press Release, regarding the Maua System 2000, Mr Luiz Tarquínio, President and C.E.O. of Tupy stated that Tupy is “actively involved in new CGI development projects … for … four different commercial vehicle components.”

At SinterCast, we are pleased with our progress at Tupy during 2004 and look forward to further growth, in both Joinville and Maua.