Arconic (NYSE:ARNC) has signed more than $450 million in long-term agreements over the past year with customers in North America , South America, Europe and Asia for its forged aluminum wheels—the largest being with PACCAR to supply wheels for PACCAR trucks under the Kenworth and Peterbilt nameplates.
“This new agreement builds on our decades-long partnership with PACCAR to deliver premium performance wheels to PACCAR customers,” said Merrick Murphy, President of Arconic Wheel and Transportation Products. “Our forged aluminum truck wheels are the lightest commercial vehicle wheels on the market, and they have unbeatable strength and corrosion resistance, meaning our customers can carry more payload, more efficiently and spend less on maintenance – it’s a win-win-win.”
As part of the agreement, PACCAR customers will have access to Arconic’s entire portfolio of Alcoa wheels. This includes the newly-launched Ultra ONE wheels made with the proprietary MagnaForce alloy, the lightest heavy-duty truck wheel on the market with 17% more strength than standard aluminum wheels. By converting from steel to Alcoa wheels, an entire tractor trailer can shed up to 1,400 pounds. The wheels are available in a variety of surface options, including the patented, easy-care, corrosion-resistant Dura-Bright EVO.
“PACCAR is committed to uncompromising engineering and industry-leading designs that meet and exceed our customers’ expectations,” said Bill Jackson, PACCAR’s Vice President of Global Purchasing. “We offer the best products to our customers, and Alcoa Wheels are part of our option packages. We are pleased to be able to extend our longstanding partnership.”
Over the past year, Arconic signed more than a dozen other contracts in North America, South America, Asia and Europe with customers in the truck, trailer, bus and RV segments. The wheels are being supplied by Arconic Wheel and Transportation Products facilities in Cleveland, Ohio; Monterrey, Mexico; Kofem, Hungary; and Suzhou, China. The company has recently invested in expanding capabilities in each of these regions to support business growth.