Hayes Acquires Remaining Ownership in Alumitech
16 March 1998
Hayes Acquires Remaining Ownership in Alumitech- Alumitech Acquisition to be Hayes' 6th Aluminum Wheel Facility in North America - ROMULUS, Mich., March 16 -- Hayes Lemmerz International, Inc. , the world's leading supplier of wheels and brake components, today announced that it has acquired the remaining fifty percent of Alumitech, its aluminum wheel joint venture that it shares with ASAHI Tech and Tomen. Terms of the agreement were not disclosed. Alumitech was a joint venture formed in 1989 to manufacture aluminum wheels for the North American light vehicle market. The 300 thousand-square foot facility, based in Somerset, Kentucky, has capacity to produce 1.2 million wheels per year, including wheels for Honda and Mercedes. Annual sales for the facility are approximately $50 million. The Kentucky operation will be Hayes' sixth aluminum wheel facility in North America. The other facilities are in Howell, MI, Huntington, IN, LaMirada, CA, Gainesville, GA and Chihuahua, Mexico. Combined with cast aluminum wheel plants in Europe, in Italy, Spain, and Belgium, as well as facilities in South America and the Far East, Hayes is the largest producer of cast aluminum wheels in the world. "The acquisition will provide additional capacity to meet strong customer demand," said Ron Kolakowski, president of Hayes' North American aluminum wheel business. "We plan to upgrade the facility by making strategic investments throughout 1998. Our continuing drive to cost effectively add capacity, by incorporating leading product and process technology, will ensure our market and industrial leadership positions into the 21st century." Hayes Lemmerz International, Inc. , with annual sales of over $1.4 billion, is a world leader in the design, engineering and manufacture of steel and aluminum wheels and brake drums and rotors for the automotive and commercial highway markets in North America, Europe and Asia. Hayes Lemmerz International has more than 7,000 employees and 20 manufacturing facilities in 9 countries worldwide. SOURCE Hayes Lemmerz International, Inc.