Two Ford Plants Sold to Nemak

The deal solidifying the ownership transfer of Ford’s Windsor and Essex aluminum plants to Alfa Corp. (Alfa) subsidiary Nemak SA de CV (Nemak) closed on November 1, 2000. In exchange for the transferred ownership of the two facilities, Ford’s holding in Nemak increased to 25 per cent from 20, with Alfa owning the other 75 per cent. Nemak, a joint venture between Ford and Alfa created in 1979, produced over 5.6 aluminum casings in 1999.

The two plants in Canada have a combined annual production capacity of 3.7 million aluminum heads and 1 million monoblocks. The two plants, which supply Ford assembly plants in the US and Canada, had sales of US$270 million in 1999. Staff at the plants will remain Ford employees.

Representing Alfa and Nemak was a team from Davies Ward Phillips & Vineberg LLP comprised of Arthur Shiff and Gillian Stacey (corporate), Donald Stanbury (real estate), Colin Cambell (tax), Mark Katz (competition and Investment Canada Act) and Gray Taylor (environmental).

Paul D. Steinkraus, Counsel—International of the Office of General Counsel, represented Ford Motor Company and Hope C. Cushman, Counsel and Secretary, represented Ford Motor Company of Canada, Limited. Ford and Ford of Canada were assisted by Donald Steadman (corporate), Elizabeth Johnson (tax), Stephen D’Arcy (commodity tax) and Daniel Law (real estate) of Fasken Martineau DuMoulin LLP’s Toronto office, and as to Nova Scotia law by Charles Reagh of Stewart McKelvey Stirling Scales in Halifax.


Donald C. Stanbury Daniel R. Law Gray E. Taylor Charles S. Reagh Gillian R. Stacey Mark C. Katz Arthur S. Shiff Colin Campbell Elizabeth J. Johnson Donald J. Steadman


Davies Ward Phillips & Vineberg LLP Fasken Martineau DuMoulin LLP Stewart McKelvey