Strattec Security Corporation

Company Profile

■URL

http://www.strattec.com

■Address

3333 West Good Hope Road, Milwaukee, WI 53209, USA

Business Overview

-The Company designs, develops, manufactures and markets mechanical locks, electro-mechanical locks, latches and related security/access control products for North American customers, and for global automotive manufacturers through the VAST Alliance. Sales to GM, Ford, and FCA accounted for approximately 60% of the Company's overall sales during the fiscal year ended July 2017.

-The Company is part of the VAST Alliance with WITTE Automotive of Germany and ADAC Automotive Inc. of Michigan. U.S.

Competition

-The Company's major competitors of lockset, housing and power access systems are as follows:

Shareholders

-Listed on NASDAQ stock exchange.

Products

Locks and keys
-Mechanical locks and keys
-Electronically enhanced locks and keys
-Locksets
-In-dash mounted ignition locks
-Column mounted ignition locks
-Ignition lock housings
-Steering column locks
-Electronic steering column locks
-Zinc die-cast and magnesium steering column lock housings
-Linear actuated ignition systems
-Door locks
-RFID keys
-Integrated keys
-Secondary locks for applications including glove box, console, spare tire, seat stowage, and tonneau cover
-Security locks for remote access applications

Power access systems
-Rear quarter mounted power sliding door system
-Lower track mounted power sliding door system
-Chain drive power liftgates
-Power strut power liftgates
-Power decklids
-ECUs for power access systems
-Power ramps

Latches
-Engine compartment latches
-Trunk latches
-Door latches
-Passive entry door latches
-Door handles
-Seating latches
-Hood latches
-Secondary latches for applications including truck endgates, tonneau covers, and glass hatches
-Cinching strikers
-Liftgate latches
-Tailgate latches
-Power sliding door latches
-Mechanical and electro-mechanical closure control units

History

1995 Spun off from Briggs & Stratton Corporation, through a tax-free distribution to the then-existing Briggs & Stratton shareholders. The Company received substantially all of the assets and liabilities related to the lock and key business owned by Briggs & Stratton.
Introduced a Passive Anti-Theft System (Pats), where the vehicle communicates with a transponder embedded in the key head. The system refuses to let the vehicle start until a correct response is provided by the transponder.
Introduced ignition with a "break-away" lock head, improving theft resistance by reducing the ability to force the rotation of the lock cylinder.
1999 Announced an alliance with WITTE GmbH, a German manufacturer of vehicle access-control products.
2001 WITTE-Strattec LLC formed joint venture creating WITTE-Strattec do Brasil in Sao Paulo, Brazil.
2002 WITTE-Strattec LLC formed joint venture with Elitech creating WITTE-Strattec China in Fuzhou, China.
Issued patent for Dual Pivot Side Door Latch.
2003 WITTE-Strattec LLC formed joint venture creating WITTE-Strattec Shanghai in Shanghai, China.
Produced first rear latch system for the Chevrolet "SSR".
2006 WITTE-Strattec alliance is strengthened by the addition of ADAC Automotive of Michigan, full-service automotive supplier with operations in North America and U.K. The three members rename the new entity the VAST Alliance.
2008 Completed the acquisition of certain assets of Delphi Corporation's Global Power Products (power sliding doors, trunk lids and liftgates) business.
2009 VAST Alliance purchased the remaining 40% ownership interest of the two Chinese entities located in Shanghai and Fuzhou, China.
2013 Established a joint venture called NextLock LLC with Actuator Systems LLC.

Supplemental Information 1

Supplemental Information 2

VAST Alliance

-In November 2000, the Company entered into a formal Alliance with WITTE-Velbert GmbH, an automotive supplier based in Germany, which designs, develops, manufactures and markets automotive access control products for European-based customers. This Alliance consisted of two elements. The first one was a cross-licensing agreement which allowed the Company to manufacture and market WITTE's core products in North America, and allowed WITTE to manufacture and market the Company's core products in Europe. The second was a 50-50 joint venture, WITTE-Strattec LLC, to invest in operations with local partners in strategic markets outside of Europe and North America.

-In November 2001, WITTE-Strattec LLC and IFER Estamparia e Ferramentaria Ltda formed Witte-Strattec do Brasil, a joint venture to serve South American automotive customers.

-In March 2002, WITTE-Strattec China was formed. This joint venture, between WITTE-Strattec LLC and a unit of Elitech Technology Co., Ltd. of Taiwan was located in Fuzhou, China, and became the base of operations for serving Asian automotive customers. As the Asian market expanded, a second Chinese joint venture was created in October 2004, named WITTE-Strattec Great Shanghai Co.,Ltd.

-In January 2006, ADAC Automotive Inc. entered into the Alliance with WITTE and the Company. ADAC, headquartered in Michigan, U.S., produces molded and painted interior and exterior door handle components, exterior trim, cowl vent grilles and marker lighting for worldwide automakers. As a result of this expansion of the original Alliance, the WITTE-Strattec LLC was renamed Vehicle Access Systems Technology LLC (VAST). With the re-branding, the joint venture companies in Brazil and China also assumed the VAST name. The VAST Alliance provides a set of cross-licensing agreements for the manufacture, distribution and sale of WITTE products by the Company and ADAC in North America, and the manufacture, distribution and sale of the Company and ADAC products by WITTE in Europe.

-In 2009, VAST LLC purchased the remaining 40% interest of its local partners in Chinese joint venture, making VAST China a wholly owned subsidiary by VAST LLC.

-In 2015, the Company announced that its VAST LLC joint venture, which includes WITTE Automotive of Germany and ADAC Automotive of the U.S., has completed an agreement to become a 50:50 joint venture partner with Minda Management Services Limited. VAST acquired a 50% equity interest in the former Minda-Valeo Security Systems joint venture, based in Pune, India for approximately USD 12 million. The joint venture will be renamed Minda-VAST Access Systems. Minda-VAST will have operations in Pune and Delhi and is expected to have approximate annual sales in excess of USD 40 million.

<Main Product>

Company Name Product
VAST Alliance Products -Hood latches
-Seat-back latches
-Door handles
-Door latches
-Power and manual rear compartment latches
Strattec and Strattec Power Access Products -Ignition lock cylinders
-Ignition lock housings
-Door lock cylinders
-Power sliding doors
-Glove box lock cylinders
-Rear compartment lock cylinders
-Power liftgates and trunk lids


<Members of the VAST Alliance>

Name Location
Strattec Security Corp. Wisconsin, U.S.
Strattec de Mexico (Plant 1) Juarez, Mexico
Strattec de Mexico (Plant 2) Juarez, Mexico
Strattec de Mexico (Plant 3) Juarez, Mexico
ADAC-Strattec de Mexico Juarez, Mexico
Strattec Power Access de Mexico Juarez, Mexico
ADAC Automotive Michigan, U.S.
ADAC Automotive,
Strattec and Strattec Power Access
(Sales/Engineering Offices)
Michigan, U.S.
WITTE Automotive (Germany Plant) Velbert, Germany
WITTE Automotive (Czech Plant) Nejdek, Czech Republic
WITTE Automotive (Bulgaria Plant) Ruse, Bulgaria


<Units of VAST LLC Joint Venture>

Name Location
VAST do Brasil Sao Paulo, Brazil
VAST Fuzhou Co. Ltd. Fuzhou, China
VAST Great Shanghai Co. Shanghai, China
VAST Japan (Branch Office) Tokyo, Japan
VAST Korea (Branch Office) Anyang, Korea
Minda VAST Access Systems Pune, India