STRATTEC SECURITY CORPORATION designs, develops, manufactures, and markets automotive access control products. The company’s products include mechanical locks and keys, electronically enhanced locks and keys, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power lift gate systems, power deck lid systems, door handles and related products for North American automotive customers. The company also supplies global automotive manufacturers through a strategic relationship with WITTE Automotive of Velbert, Germany (WITTE) and ADAC Automotive of Grand Rapids, Michigan (ADAC). Under this relationship, the company, WITTE, and ADAC market each company’s products to global customers under the ‘VAST’ brand name. Its products are shipped to customer locations in the United States, Canada, Mexico, Europe, South America, Korea, and China. The company provides full service and aftermarket support. The company is also developing additional access control products, including trunk latches, liftgate latches, tailgate latches, hood latches, side door latches, and related hardware. With its acquisition of Delphi Corporation’s Power Products Group, the company is supplying power access devices for sliding side doors, liftgates and trunk lids. Through a legal entity formed with ADAC, the company also supplies door handle components and related vehicle access hardware. The company has a formal alliance with WITTE-Velbert GmbH, an automotive supplier based in Germany, which designs, develops, manufactures, and markets automotive access control products for the European-based customers. The company has a 50-50 joint venture with WITTE-STRATTEC LLC to invest in operations with local partners in strategic markets outside of Europe and North America. The company announced the expansion of this alliance and related joint venture with the addition of a third partner, ADAC Plastics, Inc. VAST do Brasil, a joint venture between VAST LLC and Ifer do Brasil Ltda., services customers in South America. VAST Fuzhou, VAST Great Shanghai, and VAST Shanghai Co. provide a base of operations to service the company’s automotive customers in the Asian market. VAST LLC also maintains branch offices in South Korea and Japan in support of customer sales and engineering requirements. NextLock LLC During 2013, the company formed a new joint venture with Actuator Systems LLC called NextLock LLC. The purpose of this joint venture is to assemble and sell the next generation of biometric security products based upon the designs of Actuator Systems. Customers and Marketing The company is a direct supplier to OEM automotive and light truck manufacturers, as well as other transportation-related manufacturers. Its major customers are Chrysler Group LLC, General Motors Company, and Ford Motor Company. The majority of the company’s OEM products are sold in North America. OEM service and replacement parts are sold to the OEM’s own service operations. In addition, the company distributes its components and security products to the automotive aftermarket through approximately 50 authorized wholesale distributors, as well as other marketers and users of component parts, including export customers. Strategy The company’s strategy is to streamline and standardize processes to increase productivity; leverage the ‘VAST Brand’ with customer relationships to generate organic growth from global programs; offer its customers innovative products and cost savings solutions to meet their changing demands; and explore and execute targeted mergers and acquisitions with a disciplined due diligence approach and critical financial analysis to drive shareholder value. Seasonality The company’s first fiscal quarter (year ending June 2014) sales and operating results being its weakest with the remaining quarters being consistent. Research and Development The company’s research and development expenditures were approximately $700,000 in 2014. Environmental, Safety, and Other Regulations The company is subject to federal, state, local and foreign laws and other legal requirements related to the generation, storage, transport, treatment and disposal of materials as a result of its manufacturing and assembly operations. These laws include the Resource Conservation and Recovery Act (as amended); the Clean Air Act (as amended); the Comprehensive Environmental Response, Compensation and Liability Act (as amended); and others. Competition The company’s lockset, housing, and power access competitors include Huf North America, Ushin/Valeo, Tokai-Rika, Alpha-Tech, Honda Lock, Shin Chang, Magna, Edscha, Stabilus, Aisin, Brose, Mitsuba, Ohi, Kiekert, Inteva, Key Plastics, and Gecom. History STRATTEC SECURITY CORPORATION was founded in 1994.
strattec security corp (STRT:NASDAQ GM)
3333 West Good Hope Road
Milwaukee, WI 53209
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