GENTEX CORP 10-K

Item 2. Properties. As of December 31, 2024, 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, 2024 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 419,100 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 558,400 2018 Warehouse Zeeland, MI 345,000 2023 Manufacturing, 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 2023, the Company completed 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 was approximately $85 million, which was funded with cash and cash equivalents on hand. In the fourth quarter of 2024, the Company completed construction on two building expansions. The Company expanded its current distribution center by an additional 300,000 square feet, at a total cost of approximately $40 million. The Company also expanded another of its manufacturing facilities by an additional 60,000 feet, with a total cost of approximately $20 million. Both of these expansion projects were funded with cash and cash equivalents on hand. 18 During 2023, the Company began the design and initial build phase of the previously announced Gentex Discovery Preschool, an on-site daycare and preschool designed to provide Company employees with convenient, cost-effective access to quality childcare. Construction began in the third quarter of 2024 as previously announced, with an expected completion date in 2025. The total cost of the building project is expected to be $15 - $20 million, which will be funded with cash and cash equivalents on hand. The Company has also leased sales and engineering offices throughout North America, Europe, and Asia to support its sales and engineering efforts, and, in addition, has leased a manufacturing facility in Grand Rapids, Michigan: Country Number of Leased Offices/Facilities United States 4 Germany 3 Japan 3 Canada 2 Israel 2 United Kingdom 1 France 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; Santa Clara, CA; Canada; and Israel. 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 42 - 45 million interior automatic-dimming mirror units annually, based on current product mix. The Company evaluates equipment capacity on an ongoing basis and adds equipment as needed. In 2024, the Company shipped 29.9 million interior automatic-dimming mirrors. The Company’s automotive exterior mirror manufacturing facility has an estimated building capacity to manufacture approximately 19 - 22 million units annually, based on the current product mix. The Company evaluates equipment capacity on an ongoing basis and adds equipment as needed. In 2024, the Company shipped approximately 17.8 million exterior automatic-dimming mirrors.