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Delphi, Parlex Enter into Strategic Alliance to Grow Military/Aerospace Market Presence
August 23, 2004 |Estimated reading time: 1 minute
Methuen, Mass. and Troy, Mich. — Delphi Corp. and Parlex Corp. have entered into a strategic alliance that is expected to benefit both companies' current sales and future growth prospects in the military/aerospace interconnect market.
The agreement will have Parlex providing Delphi Connection Systems, a business line within the corporation's Packard Electric division, with flexible circuits and rigid flexible circuits for various customer applications. Delphi Connection Systems will fit these circuits with its line of connectors and related components at its final assembly operations in North America.
Parlex will use many of Delphi Connection Systems' interconnect products for its flex circuit programs. Delphi also will perform final assembly for Parlex's completed flex circuit products at its Tijuana, Mexico operation. The Tijuana manufacturing plant produces complex military/aerospace assemblies and has 30 years of manufacturing experience in flex circuit assembly.
The alliance marks the continued acceleration of Delphi's activities to better address customer needs for flex products in this market. It allows both companies to leverage wide-ranging capabilities and expand their reach into the marketplace by working together in a manner that will prove to be mutually beneficial through increased economies of scale and more competitive product offerings for customers.
In addition to assembly and connection system expertise, Delphi Connection Systems will also provide Parlex with additional sales channels and add design and application engineering capability to the sales process.
Production will take place in three Parlex facilities, but the majority will be manufactured in the company's Methuen-based multilayer operation. The program is expected to provide up to $7 million in annual sales for Parlex.In addition to the military/aerospace market, the strategic alliance leveraging product, engineering and manufacturing capabilities is expected to address the needs of customers globally in other markets, such as computer and peripheral, telecom, and industrial. This is heightened by the expansion of flex-related products on which the two companies will collaborate.
Parlex Corp. is a world leader in the design and manufacture of flexible, interconnect products. For more information, visit www.parlex.com.
Delphi Connection Systems designs and manufactures advanced interconnect components that are used in computer and peripheral, telecom, broadcast, semiconductor, commercial aviation, medical, automotive, and military markets. For more information, visit www.delphi.com/connect.