Gentex leaders announced the plan to open a Moroccan facility in the company’s second quarter earnings report.
Chief Operating Officer Neil Boehm:
“Many of our international customers are focused on derisking their supply base by increasing the amount of localized production in each region where they operate. This has created headwinds for our international growth. Specifically, several of our European customers are requiring manufacturing locations in the region to support their vehicles that are built and sold in Europe.”
Requests from customers include base electro chromatic mirrors and advanced electronic modules, and leaders believe the facility can support future technologies.
“We believe with our operating discipline and the structure we are establishing Morocco, that the shift in manufacturing will not create a large increase in operating expenses. And with core technologies still coming from our existing facilities, we don't see this transition creating excess capacity in our core facilities.”
Company leaders have signed a letter of intent, selected the site, and received Moroccan government support to create the plant.
Gentex plans to start production in 2028.
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