Accuride announced Monday that its “Fix and Grow” actions to restructure and upgrade core operations have improved operational performance and enabled the company to secure new long-term agreements for steel and aluminum wheels.
Accuride made the announcement during a news briefing today at Heavy Duty Aftermarket Week 2013 in Las Vegas.
In 2011, Accuride entered into a two-year, $150 million investment program designed to restructure and expand its core wheel and wheel-end component operations, while upgrading the capabilities of its four business units. These investments included, among others:
- $55 million for additional aluminum wheel capacity,
- more than $35 million to restructure and upgrade its Gunite business, and
- $21 million in environmental and safety-related facility upgrades.
With its aluminum wheel manufacturing investments now complete, Accuride President and CEO Rick Dauch says the company has doubled its production capacity for forged aluminum wheels, while Gunite’s program to install advanced machining and assembly equipment, upgrade casting and consolidate its manufacturing footprint is 90 percent complete. Accuride also plans more than $30 million in steel wheel facility upgrades during 2013-15 and will announce details of its 2013 capital program later this year.
Accuride also recently earned new long-term agreements with several key partners, which represent more than 70 percent of its core wheel business. The company also secured new aluminum wheel business of up to $30 million annually that it will serve using its newly-expanded aluminum capacity.
Gunite’s casting and machining upgrades, meanwhile, are generating opportunities for the business to regain share. Gunite has been designated as a preferred aftermarket source by a key OEM and removed from new-business hold by all of its OEM customers, allowing fleets to specify Gunite products when ordering vehicles.