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Donnelly Expands Into South America With Brazilian Joint Venture

18 August 1997

Donnelly Expands Into South America With Brazilian Joint Venture

    HOLLAND, Mich., Aug. 18 -- Donnelly Corporation
today announced that it has formed a new joint venture in Sao Paulo, Brazil,
to produce interior and exterior mirrors for the South American automotive
industry.
    Donnelly will own 50 percent of the joint venture, named Donnelly/Arteb
Ltd.  Donnelly is joined in the venture by Industrias Arteb S.A., South
America's leading manufacturer of automotive headlights and taillights.  Arteb
is also based in Sao Paulo, and had 1996 sales of more than $90 million.  The
company has strong customer contacts in South America and employs advanced
lean manufacturing processes in combination with a number of highly
sophisticated technical competencies.
    "We are delighted to have joined with such a quality partner in one of the
world's fastest-growing automotive markets," said John Donnelly, senior vice
president of business development and marketing.  "With this addition,
Donnelly becomes the only automotive supplier with the capacity to locally
manufacture automotive mirrors for customers in every major auto-producing
area in the world."
    Donnelly/Arteb Ltd. has already booked new business and is expected to
commence operations during the first half of 1998.  The South American market
is seen by many industry observers as one with immediate and long-term growth
potential.  With the stabilization of key South American economies, the region
now has the size, population and economic growth needed to fuel a growing auto
industry.  Analysts believe that Brazil alone will be producing as many as 2.5
million vehicles per year by the year 2000.
    "In this competitive environment, companies like Arteb and Donnelly can
build strategic alliances that allow us to maximize our opportunities," said
Pedro Eberhardt, director president of Industrias Arteb S.A.  "Donnelly is
well respected worldwide as an automotive mirror manufacturer, and we see this
joint venture as a major step forward for both of the companies involved."
    Donnelly Corporation is an international automotive supplier, dedicated to
serving customers around the globe with high-quality fabricated, molded and
coated glass products.  The company has been based in Holland, Michigan since
1905, and today operates from 28 locations in the U.S., Mexico, Europe and
Asia.  Donnelly is also recognized as a leader in the application of
participative management, and was named as one of the "Top Ten" in the book,
"The 100 Best Companies to Work for in America."

SOURCE  Donnelly Corporation