Superior Industries Acquires New Facility
1 September 1999
Superior Industries Acquires New Facility Dedicated to Non-Wheel Aluminum Automotive Components
VAN NUYS, Calif.--Sept. 1, 1999--Proprietary Cast/Forge Technology for Manufacturing
Aluminum Suspension and Related Components
Superior Industries International, Inc. announced today that it has acquired a 142,000 square foot building and approximately 69 acres of land in Heber Springs, Arkansas to house the Company's dedicated aluminum automotive components manufacturing operations. The purchase price was not disclosed.
"This purchase clearly signals our growing confidence that we will be successful in building Superior's position in the emerging OEM market for aluminum suspension and similar performance-related automotive components. Industry sources have estimated that this could be a $2.5 billion market opportunity. Superior grew to its current leadership position in the OEM aluminum wheel industry by delivering the highest quality products built to exacting specifications in world class facilities. Our well earned reputation for engineering and manufacturing excellence has served us well in the aluminum wheel business, and we believe it will garner a significant share of this growing emerging aluminum components market. We are increasingly optimistic that this new market will contribute significantly to Superior's growth in the years to come," a company spokesman said.
"Our new facility, a short distance from our wheel manufacturing facility and engineering center in Fayetteville, Arkansas, will house the specially designed equipment for the proprietary hybrid cast/forge manufacturing technology licensed by the Company in 1998. Senior manufacturing and marketing professionals have already been hired, and we expect the new facility to be operational in about 15 to 18 months. We recently announced that the company won an important contract to manufacture front upper control arm/bracket assemblies for a 2002 model year automobile. We have been aggressively marketing our design and manufacturing capabilities to a broad range of potential customers, who have been excited about the possibility of bringing us into the supply base," the spokesman added.
Superior's hybrid technology combines the design flexibility, light weight and cost advantages of casting with improved strength characteristics. The technology will be used to manufacture structural components that will be less expensive while maintaining structural requirements of the conventional forged aluminum and steel components. The process currently is being used for manufacturing aluminum components.
About Superior Industries
Superior supplies aluminum wheels and other aluminum components to Ford, General Motors, BMW, Volkswagen, Audi, Rover, Toyota, Mazda, Nissan and Isuzu.
The statements contained in this release, which are not historical facts, may be deemed to constitute forward-looking statements. Actual results might differ materially from those projected in such statements due to a number of risks and uncertainties, including, without limitation, demand and competition for the Company's products, and other risks or uncertainties detailed in the Company's filings with the Securities and Exchange Commission.