Accuride Boosts Aluminum Truck Wheel Capacity

Accuride Corporation (NYSE: ACW) has executed a $35 million strategic initiative that will significantly enhance its aluminum wheel production capacity through a combination of strategic acquisitions, key process technology investments, and transfers of aluminum wheel machining lines within its operations.

“Many factors, including fuel economy requirements, residual value and aesthetics, are driving the growth in aluminum wheel demand in the North American commercial vehicle industry,” said Rick Dauch, President and Chief Executive Officer, Accuride. “Accuride is investing to ensure that we have the right production capacity in place when and where our customers need it, whether for steel or aluminum wheels. We’re also raising our standards for product dependability and finish to meet customers’ ever-increasing expectations.”

In June 2011, Accuride acquired substantially all of the assets of Forgitron Technologies LLC, including an 80,000-square-foot aluminum wheel manufacturing facility located in Camden, South Carolina. Accuride stopped production at Camden during the following month to convert its production capacity to the Accuride brand standards. Plant manufacturing systems and controls, as well as customer order management and sales programs were also integrated into Accuride systems. Now producing Accuride-branded aluminum wheels for the commercial vehicle market, the Camden plant increased Accuride’s aluminum wheel manufacturing capacity in North America by 21 percent.

In November 2011, Accuride launched its new Mega-Line at its plant in Erie, Pa. The new Mega-Line employs a fully automated manufacturing process that uses a centralized, closed-loop system for chip and coolant management. The line’s eight robots take a forged, spun and heat-treated raw wheel through the turning, pre-stress, milling, coining and Rösler surface finishing processes to produce durable, high-gloss aluminum wheels that are ready for shipment with zero manual intervention. The Mega-Line established a new industry benchmark in process technology and boosted Accuride’s total aluminum wheel manufacturing capacity by another 42 percent.

In response to growing demand in Mexico, Accuride also transferred an existing manual-process aluminum wheel machining line to Accuride de Mexico’s 226,000-square-foot Monterrey, Mexico, plant during the summer. The new aluminum wheel line was operating at full capacity in November 2011, establishing Accuride de Mexico as the country’s only single-source supplier of both steel and aluminum wheels for the local medium- and heavy-duty commercial vehicle market. The capacity expansion also positioned Accuride closer to its customers’ expanding footprint in the region.

As part of its aluminum wheel machining investments, Accuride also installed additional polishing equipment in its Erie and Monterrey facilities. This new equipment established a higher standard of enhanced finish for Accuride’s aluminum wheel product portfolio and increased efficiency and productivity.

Said Scott Hazlett, Senior Vice President and General Manager, Accuride Wheels: “By strategically managing our existing capacity and investing in key acquisitions and capacity initiatives, Accuride is fortifying its status as a leading aluminum wheel supplier to the North American commercial vehicle industry. Further, with our proven steel wheel expertise and extensive product portfolio, we’re able to seamlessly serve as a single-source supplier for our customers’ aluminum and steel wheel needs.”

Related content: Accuride Transfers Erie Line to Mexico
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