THE OFFSHORE GROUP

Camfil Farr to Establish Mexican Plant

Laval, Quebec-based Camfil Farr has entered into a 5 year agreement for the provision of outsourced manufacturing support or, “shelter” services in Mexico with The Offshore Group of Tucson, Arizona. The company will establish a 17,000 square foot production facility at the Group’s La Angostura Industrial Park in Saltillo, Coahuila.

At the project’s maturity Camfil Farr expects to employ in excess of 100 individuals in the manufacture of diesel locomotive filtration products.

According to company president, Dominic Mignacco, “We look forward to beginning production in Mexico . Doing so will enable us to utilize the quality workforce there to make our company more competitive in its challenging markets.”

Camfil Farr has its world headquarters in Trosa, Sweden . The company designs and manufactures air filters and filtration equipment for a wide range of markets and applications. Its global sales total US $413 million.

Greening Donald to Locate in Saltillo

Orangeville , Ontario – based Greening Donald has entered a into a 5 year agreement for the provision of manufacturing support services under The Offshore Group's ISO 9001:2000 certified Shelter Program. The Canadian supplier to the automotive industry is one of the largest manufacturers of airbag inflator filtration products in the world.

Greening Donald will occupy 35,000 square feet of industrial space at The Offshore Group’s La Angostura Industrial Park in Saltillo, Coahuila, and will evengtually employ over 100 direct labor workers.

According to company president, Larry Fort, “The new Saltillo location is ideal in that it offers us a readily available skilled and trained workforce. Saltillo is also strategically located to service our customers in Mexico and the USA . We chose The Offshore Group as our partner, because of the comprehensive service and support they will provide in administering our Mexican facility. This will allow us to place our focus and resources on improving our products and production systems, in order that we remain competitive and a leading supplier to the automotive airbag industry”.

APSM Systems, Inc. to locate in Guaymas, Sonora

Phoenix , Arizona –based APSM Systems, Inc. has entered into an agreement for the provision of manufacturing support, or “shelter,” services with The Offshore Group. The firm, one of the most diverse contract manufacturers in the Southwest and Mountain Regions, will now offer Mexican capacity to its clientele.

APSM will locate in approximately 27,000 sq. ft. of industrial space, and will perform operations such as: hardware insertion, robotic welding, laser cutting, powder coating, punching and spot weld. Employment in the new facility will be approximately 100 within the first two years of operation.

According to APSM Systems Senior Vice President, Mike Thul, "Our decision to establish a facility to manufacture in Mexico was predicated on our desire to offer our base cost-effective services. Additionally, we were attracted to the areas' stable workforce".

Large Turnout at the 11th Annual Manufacturing in Mexico Summit

This past October 20-23, The Offshore Group held its Manufacturing in Mexico Summit in San Carlos , Sonora , Mexico for the 11th consecutive year. Turnout numbered in excess of 350 individuals.

Executives from 40 Offshore Group company clients were in attendance, as were those from 25 potential investor firms. Manufacturers in the automotive, aerospace, electronics, medical device and appliance industries traveled from the U.S., Canada, Austria, Germany, and New Zealand to take part in the event. Featured speakers included: José (Pepe) Guevara of the Boston Consulting Group; renowned Mexican journalist, Sergio Sarmiento; and former U.S. Ambassador to Mexico , Jeffrey Davidow.

Those interested in reviewing the 2005 program can access the information at www.offshoregroup.com/summit.asp

Individuals that wish to be kept up to date as regards the 12th Annual Manufacturing in Mexico Summit may do so by entering their information at: http://www.offshoregroup.com/pre-reg.asp

Good Bye to a Good Friend

The Offshore Group will deeply miss one of its client companies' most gracious and respected executives.

Hans Jürgen Ziesch of Watertown, Minnesota, passed away suddenly and without warning on Saturday, October 29, 2005 at age 55.

Born in Dresden, Germany, he earned his Electrical Engineering degree in Aachen, Germany and left that country after 8 years in the German Air Force. He continued his career in the southern part of the United States with SCI Systems, Avex Electronics, Phoenix Microsystems, and Txport. Late 1996, Hans moved with wife, Sherry, to Minnesota and they made their home in the community of Watertown. On January 1, 1997 Hans joined TURCK Inc., a manufacturer of high technology and industrial automation, as its Vice President of Manufacturing. In this position, Hans dramatically restructured the firm's manufacturing processes according to the "Kaizen" method, and was instrumental in leading the expansion of TURCK into Mexico and China.

Hans was appreciated for his knowledge of both the German and American culture and language, since the founders of TURCK and the parent company are based in Germany. He was loved by his peers and colleagues and will be greatly missed as a great executive and a great man. We at The Offshore Group express our deepest condolences to the Ziesch family. We are thankful for having had the privilege of having known and worked with him.

Let Us Know How We are Doing

Leticia Martinez, Offshore Group ISO Management Representative

As a part of ongoing efforts to promote an atmosphere of continuous improvement, The Offshore Group has established a permanent email account to which client firms and their personnel may directly address their complaints, comments, and suggestions. The purpose of establishing this direct and convenient line of communication is to enable The Offshore Group to determine and respond to its shelter plan client's requirements and expectations with greater speed and efficiency.

Please send complaints, suggestions or comments to: ISO@offgroup.com

Keep up-to-date on economic, political and business developments with MexicoWatch.

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