Collins & Aikman Sets General Motors Instrument Panel Joint Venture With Mexican Industries

12 September 1997
Collins & Aikman Sets General Motors Instrument Panel Joint Venture With Mexican Industries

    CHARLOTTE, N.C., Sept. 12 -- Collins & Aikman Corporation
announced today that its Detroit-based automotive interior plastic
trim subsidiary, Manchester Plastics, has entered into a joint venture
agreement with Mexican Industries, a minority-owned business located in
Detroit's Empowerment Zone, to make instrument panels for General Motors
.
    "This joint venture is exciting because of the expertise and experience
that both companies bring to the table," said D. Michael Weston, President of
Manchester Plastics.  "In addition, we are very pleased to participate in the
growing opportunities in Detroit's Empowerment Zone by entering into this
joint venture and bringing new jobs to the inner city."
    Under the joint venture agreement, the two companies will form a new
company called Aguirre and Manchester Plastics, LLC and begin operating in the
Fall of 1998.  The joint venture company is expected to yield $66 million in
sales annually.
    "We are very pleased about this new venture with Manchester Plastics,"
said James Merkhofer, Mexican Industries President.  "This operation means a
new product line and a new area of expertise for Mexican Industries -- one
that we hope will expand to include other business opportunities.  This
operation is a direct result of General Motors' commitment to the city of
Detroit and the Empowerment Zone."
    "We look forward to breaking ground on this important new partnership that
will benefit the Hispanic community in Southwest Detroit," said Pam Aguirre,
Mexican Industries Chairman of the Board and CEO.
    "This joint venture is a reflection of General Motors' and Collins &
Aikman's longstanding relationship and joint commitment to the communities in
which we operate," said Thomas E. Hannah, Chief Executive Officer of Collins &
Aikman.  "General Motors has consistently sought out relationships with
minority companies, and we are proud to be a part of their vision for Detroit
and the Empowerment Zone by working with Mexican Industries on this product
line."
    Mexican Industries is a minority-owned, family-run automotive supplier of
leather wrapped steering wheels, driver and passenger side air bags, tire
covers, consoles, arm rests and other automotive soft trim products.  The
Company has eight plants and employs 1,500 people, mostly Hispanic, in
Southwest Detroit.
    Collins & Aikman Corporation is a global supplier of automotive interior
systems, including textile and plastic trim, acoustics and convertible top
systems.  Headquartered in Charlotte, NC, the Company's recent acquisitions of
JPS Automotive and Perstorp Components significantly expanded Collins &
Aikman's product offering and international presence to include additional
operations in the U.S., Mexico, Spain, Canada, Sweden, Belgium, France and the
U.K.  The company employs almost 13,000 employees and operates 56
manufacturing facilities in 8 countries.

SOURCE  Collins & Aikman Corporation