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Donnelly to Expand Electronics Capabilities in Ireland

16 February 2000

Donnelly to Expand Electronics Capabilities in Ireland

    HOLLAND, Mich., Feb. 16 -- To meet growing demand for its
automotive electronic products, Donnelly Corporation has agreed to
acquire the Longford, Ireland, manufacturing assets of IEC Electronics
Corporation.  Terms of the cash deal were not disclosed.
    As part of the agreement, Donnelly will acquire equipment and materials
used to manufacture electronic components such as printed circuit boards.
Donnelly has also agreed to lease IEC Electronics' manufacturing space in
Longford.  The facilities will operate in Ireland as part of Donnelly
Electronics, a Donnelly Corporation affiliate, and production of electronic
components is expected to begin as soon as late spring or early summer.
Employment at the facility could exceed 150 once it reaches full production.
    Specialty automotive electronics is one of Donnelly's fastest growing
business segments.  The company is the world's largest producer of automotive
mirrors and mirror systems and in recent years has led an auto industry trend
toward packaging sophisticated electronics into rearview mirrors.
    "By establishing our presence in Longford we will be better able to serve
the growing demand for our electronics products from customers around the
world," said Dwane Baumgardner, Donnelly chairman and chief executive officer.
"With electronics production capabilities in North America, Asia, and now
Europe, we are rapidly moving to the forefront in the integration of
electronics and automotive rearview products."
    Through its various product lines, Donnelly is a supplier to every major
automotive manufacturer in the world.  The company has been based in Holland,
Michigan, since 1905, and today has approximately 6,000 employees in 12
countries worldwide.  Donnelly has been named by the Society of Automotive
Engineers as a model company in lean manufacturing practices.  In addition,
Donnelly is nationally recognized as a leader in the application of
participative management principles and systems.