Hayes Lemmerz Completes New Aluminum Wheel Manufacturing Facility
2 June 1999
Hayes Lemmerz International Completes New Aluminum Wheel Manufacturing Facility In the Czech Republic
- New Aluminum Wheel Facility to Supply New Skoda-Volkswagen Contract -
OSTRAVA, Czech Republic, June 1 -- Hayes Lemmerz
International Inc. today announced that it is completing
construction of a new aluminum wheel manufacturing facility in the Czech
Republic, which will begin operation by mid-year 1999. This is the fifth
aluminum wheel plant in Europe and is being built to support the contract from
Skoda (a unit of Volkswagen) for the new Felicia car, as well as to meet
strong demand from several other important customers in Europe.
Hayes Lemmerz is the largest supplier of both steel and aluminum wheels in
Europe. Globally, Hayes Lemmerz is one of the leading suppliers of wheels,
brakes, suspension, structural and other light weight components to the global
transportation industry.
Phase I of the two stage plan for the new 144,000 square foot facility
calls for annual production of 500,000 cast aluminum wheels. Phase II will
bring the total capacity to one million wheels within the next two years.
This plant will have the most modern production equipment to meet the highest
standards in the industry.
The new contract from Skoda, for the Felicia, positions Hayes Lemmerz to
supply a significant share of Skoda's aluminum wheel requirements. The total
value of this aluminum wheel contract is in excess of $5 million and is part
of a long term supply agreement initiated with Skoda.
The aluminum plant's neighboring steel wheel facility in Ostrava is also
producing steel wheels for Skoda and other customers. The Ostrava steel wheel
facility has capacity for six million wheels and with three other steel wheel
facilities, has the capacity to annually produce over 25 million steel wheels
for the European automotive industry. In September, Hayes Lemmerz will also
begin a new wheel tire assembly facility for Skoda in Mloda Boleslav in the
Czech Republic, its fifth such just-in-time assembly facility in Europe.
"We are pleased that our new Ostrava plant will be initiated with a
contract from our long-standing customer Skoda, said Giancarlo Dallera,
President of Hayes Lemmerz European Aluminum Wheels. "This additional
capacity will also take some of the burden off of our other facilities which
have been stretched to meet overwhelming demand for our top quality aluminum
wheels. We continue to extend our number one market position in both aluminum
and steel wheels in Europe and worldwide. The addition of new world class
production in the Czech Republic is key to our future growth."
"We are also continuing to grow our steel wheel production in the Czech
Republic," added Klaus Juenger, President of Hayes Lemmerz European Fabricated
Wheels. "Now we are also adding a wheel tire assembly plant adjacent to the
Skoda car factory to further support this important customer. All of this
growth is driven by our strong technology and high quality and we see many
opportunities to continue to grow with the major car producers in Europe and
globally."
Hayes Lemmerz International, Inc., with the completion of its acquisition
of CMI International, is one of the world's leading global suppliers of
automotive and commercial highway wheels, brakes, suspension, structural and
other light weight components. Together, the company has pro forma sales of
close to $2.5 billion with 40 plants, 11 joint venture facilities and over
15,000 employees worldwide.
For more information about Hayes Lemmerz International, please be sure to
visit the web site at http://www.hayes-lemmerz.com .
CONTACT: William Shovers of Hayes Lemmerz International, 734-942-4187; or
Peter Collins of Rubenstein Associates, Inc., 212-843-8050, for
Hayes Lemmerz International.