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Harvard Industries, Inc. Seeks to Close Bolivar, Tenn. Auto Parts Plant

11 December 1997

Harvard Industries, Inc. Seeks to Close Bolivar, Tenn. Auto Parts Plant

    TAMPA, Fla., Dec. 11 -- Harvard Industries, Inc. announced
today it will seek the approval of the U.S. Bankruptcy Court for the District
of Delaware to stop producing exterior rear view mirrors and exterior door
handles for the automobile industry and close its manufacturing facility in
Bolivar, Tenn.
    An exact date for the closing of the facility, known as the Harman plant,
has not been set, but will probably be sometime after February 1998, according
to Richard T. Dawson, Harvard's senior vice president for law and
administration.
    "For the past two years, the Harman plant has experienced a steady erosion
of its business base," Dawson said.  "It is unlikely that the base will
improve significantly enough to warrant continued operations.  We have tried
to sell the plant, but negotiations -- some of which continued until late last
week -- have failed to produce an acceptable deal."
    Harvard Industries' customers in the automotive industry will make
arrangements to obtain rear view mirrors and door handles from other
suppliers, and Dawson said Harvard will continue to supply the parts during
that transition period, a period expected to last little more than 90 days.
    The future of the Harman facility has not been decided, but Dawson said
the company is negotiating with a company that has interest in the building
and equipment.  The company would manufacture products unrelated to any
products made previously at the Harman plant, according to Dawson.
    "At this time, there is no way of knowing whether those negotiations will
be fruitful," Dawson said.  "If a sale can be negotiated, we do not know
whether new operations at the Harman plant will provide job opportunities for
the current work force."
    Harvard's Harman plant employs approximately 385 workers.
    Harvard Industries, a major producer of OEM automotive parts and
accessories, filed for protection under Chapter 11 of the U.S. Bankruptcy Code
last May.
    The company recently sold the Kingway material handling division of its
Kingston-Warren subsidiary to Stanwich Acquisition Corp. for about
$18 million.
    The Harman plant closing and the Kingway sale are all part of Harvard's
evaluation of its non-core business elements, Dawson said.
    "Harvard is continuing to look closely at its operations and is committed
to concentrating on the growth possibilities of its core business," Dawson
said.  "When our restructuring is completed, Harvard Industries will once
again be a leader in the automotive OEM industry."
    Harvard Industries, Inc. designs, develops and manufactures a broad range
of components for original equipment manufacturers that produce cars and light
trucks in North America and abroad.

SOURCE  Harvard Industries, Inc.