Accuride Corporation announced that its “Fix and Grow” actions to restructure and upgrade core operations have improved operational performance and enabled it to secure new long-term agreements for steel and aluminum wheels.
In 2011, Accuride launched a two-year, $150 million investment program to restructure and expand its core wheel and wheel-end component operations, and upgrade the capabilities of each of its four business units. Investments included:
$55 million for additional aluminum wheel capacity.
More than $35 million to restructure and upgrade its Gunite business.
$21 million in environmental and safety-related facility upgrades.
With its aluminum wheel manufacturing investments complete, Accuride has doubled its production capacity for forged aluminum wheels. Gunite's program to install advanced machining and assembly equipment, upgrade casting, and consolidate its manufacturing footprint is 90% 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 in 2013.
Accuride recently earned new long-term agreements with several key customers representing more than 70% of its core wheel business. It also secured new aluminum wheel business of up to $30 million annually that it will serve using its newly expanded aluminum capacity. This leaves additional aluminum capacity open to enable Accuride to respond rapidly to growth in customer demand when the projected recovery in the North American commercial vehicle industry occurs in the second half of 2013.
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.