Item 2. Properties
Item 2. Properties.
As of December 31, 2022, the Company operates primarily out of facilities in Zeeland and Holland, Michigan, which consist of manufacturing, warehouse, and office space. The Company also operates a chemistry lab facility in Zeeland, Michigan to support production. In addition, the Company operates overseas offices in Europe and Asia as further discussed below. The location, square footage and use of the most significant facilities as of December 31, 2022 were as follows:
Owned Locations Square Footage Date of Acquisition/Build (1)
Use
Zeeland, MI 26,600 1970 Warehouse, Office
Zeeland, MI 197,200 1972 Manufacturing, Office
Zeeland, MI 70,000 1989 Manufacturing
Zeeland, MI 70,000 1989 Office
Zeeland, MI 359,100 1996 Manufacturing
Zeeland, MI 168,900 2000 Manufacturing
Zeeland, MI 334,000 2006 Manufacturing, Office
Zeeland, MI 100,000 2010 Manufacturing, Warehouse
Zeeland, MI 31,800 2011 Office
Zeeland, MI 349,600 2016 Manufacturing, Warehouse
Zeeland, MI 258,400 2018 Warehouse
Holland, MI 242,300 2012 Manufacturing, Warehouse
Holland, MI 29,900 2021 Office
Erlenbach, Germany 90,000 2003 Office
Shanghai, China 25,000 2006 Office, Warehouse
Shanghai, China 85,000 2017 Office, Warehouse, Light Assembly
(1) Date of Acquisition/Build refers to first year of operations and does not refer to subsequent additions or expansions.
In 2021, the Company completed construction of a 36,000 square-foot addition to its main corporate office and manufacturing facility to expand its chemistry lab facilities, with a total cost of approximately $10 million, which was funded from cash and cash equivalents on hand.
Additionally, in the first quarter of 2022, the Company began construction on a 345,000 square-foot manufacturing facility located at a 140 acre site in Zeeland, Michigan, where the Company previously performed master planning and completed land infrastructure improvements. The total cost of the building project is expected to be approximately $80 - 90 million and will be funded with cash and cash equivalents on hand. The facility is expected to be operational sometime in 2023.
The Company has also begun construction on two building expansions during the second quarter of 2022. The Company is expanding its current distribution center by an additional 300,000 square feet, with a total cost still expected to be approximately $40 - $45 million. The Company is also expanding another of its manufacturing facilities by an additional 60,000 feet, with a total cost still expected to be $20 - $30 million. Both of these expansion projects will be funded with cash and cash equivalents on hand.
The Company also has leased sales and engineering offices throughout the United States, Europe, and Asia to support its sales and engineering efforts, as well as a leased manufacturing facility in Grand Rapids, Michigan:
17
Country Number of Leased Offices/Facilities
Germany 3
Japan 3
United States 3
Israel 1
United Kingdom 1
Sweden 1
Korea 1
The Company's Automotive Products segment operates in virtually all of the foregoing facilities. The Company's Other segment operates in certain Zeeland, Michigan facilities, as well as a research and development offices in Salt Lake City, Utah and Santa Clara, CA.
Capacity.
The Company believes its existing and planned facilities are currently suitable, adequate, and have the capacity required for current and near-term planned business. Nevertheless, the Company continues to evaluate longer term facilities needs.
The Company estimates that it currently has building capacity to manufacture approximately 34 - 37 million interior automatic-dimming mirror units annually, based on current product mix (excluding the impact of the above referenced construction). The Company evaluates equipment capacity on an ongoing basis and adds equipment as needed. In 2022, the Company shipped 28.7 million interior automatic-dimming mirrors.
The Company’s automotive exterior mirror manufacturing facility has an estimated building capacity to manufacture approximately 15 - 18 million units annually, based on the current product mix (excluding the impact of the above referenced construction). The Company evaluates equipment capacity on an ongoing basis and adds equipment as needed. In 2022, the Company shipped approximately 15.5 million exterior automatic-dimming mirrors.