Within the framework of a cooperation agreement, Oerlikon Balzers Coating will take over the PVD coating operations of Gold Star Coatings, a subsidiary of the industrial tooling group Star Cutter Company. Through the acquisition of Gold Star Coatings, America’s number three company in the coating industry, Oerlikon Balzers Coating is expanding further its already leading position in North America. The transaction will be concluded on April 30, 2006. Going forward, Oerlikon Balzers Coating will assume the function of coating partner for the tool re-sharpening service centers operated by Star and SU, and sold through Star SU in the US, Canada and Mexico. In addition, Oerlikon Balzers Coating will also open an in-house coating center in the gear tool manufacturing operation of Star Cutter Company in East Tawas, Michigan.

The existing coating center of Gold Star Coatings in Richmond, Indiana, will be expanded to become a significant regional site for Oerlikon Balzers Coating. The activities of Gold Star’s West Branch, Michigan facility will be integrated into three existing Oerlikon Balzers Coating coating centers in the state of Michigan. Thus in the future, Oerlikon Balzers Coating will have a network of 14 sites in the US and Canada for contract coating, as well as three in-house coating centers located on customer premises. Thomas Limberger, CEO of Unaxis, stated: "This transaction not only strengthens our presence in the North American market, it is also consistent with Oerlikon Balzers Coating’ strategy as a full-service provider to expand even further its in-house coating operations at the plants of major customers.“

Through its collaboration with Oerlikon Balzers Coating, Star Cutter Company will benefit from having an efficient coating facility as well as access to the most modern coatings that are tailored to its specific requirements. The in-house center will simplify the work processes and reduce logistics costs. Moreover, Star Cutter Company’s customers will also benefit from shorter delivery times, optimal quality and value added services.

Oerlikon Balzers Coating is the leading global supplier of PVD coatings, which decisively improve the performance and service life of precision components as well as metalworking and plastics processing tools. These proprietary coatings developed by Oerlikon Balzers Coating and marketed under the BALINIT® brand are extremely thin and very hard. They significantly reduce wear and friction. Oerlikon Balzers Coating also develops coating processes, manufactures and markets coating systems and turnkey production lines, and offers contract coating services through its dynamically growing network of currently more than 70 coating centers in Europe, the Americas, and Asia. Oerlikon Balzers Coating operates 15 coating centers in the USA and Canada, two of which are in-house centers located directly on the premises of large customers. Roughly 320 of the company’s total workforce of approximately 2500 individuals are located in the USA and Canada. Oerlikon Balzers Coating is a part of the Swiss Unaxis Holding Ltd., a globally leading provider of production systems, components and services for high-tech products.