Accuride to Invest $75 Million in Added Capacity for 2012

LAS VEGAS. Accuride Corp. chose the 2012 Heavy Duty Aftermarket Week Conference (HDAW) here this week to announce that the  company expects to make additional investments of approximately $75 million in  2012 to continue to strengthen product availability, quality and reliability;  upgrade its manufacturing processes; and improve customer service. Rick Dauch,  president &CEO, made the announcement during a press briefing. The  scheduled 2012 investments follow the $35- million investment made in 2011 to increase the firm’s aluminum-wheel  production capacity.  

The first phase targets new machining lines  and related equipment in the wheels business and is already underway.  A second phase involves improvements at  Accuride’s Gunite operations.

“Accuride is committed to being a reliable and dependable supplier of steel and aluminum wheels and wheel-end  components for our OE and aftermarket customers,” said Dauch. “We made  solid progress in boosting our production capacity last year, and are stepping  up our investments to extend and accelerate that progress throughout 2012.  These investment plans further demonstrate  our continuing commitment to improve product quality and ensure availability to  meet growing demand by our customers and the industry. We won’t be satisfied  until Accuride becomes the premier supplier of wheel-end system solutions to  the global commercial vehicle industry.”

Accuride plans $20  million of aluminum wheel capacity investments in 2012 that will include  facility improvements, the installation of new machining lines and equipment,  as well as the transfer of equipment among Accuride’s three aluminum wheel  plants in Erie, PA.;  Camden, SC  and Monterrey, Mexico.  These actions  are intended to optimize material  flow, standardize wheel machining processes, and achieve greater surface-finish  consistency for its aluminum-wheel product lines. They signal  Accuride’s intention to “aggressively  expand” its production  capacity as aluminum wheel demand continues to grow in North America.

  For 2012, the company will also make targeted  investments in its steel wheel business, including machining, equipment,  facility upgrades and engineering initiatives to further improve product and  process quality, according to Dauch.

The second phase of Accuride’s capital  investment program, to be announced later this quarter, targets the Gunite  wheel-end business unit that produces spoke wheels, hubs, rotors, full cast  brake drums and automatic slack adjusters. Investments are intended to address  production issues and capacity constraints that Gunite experienced during 2011  by boosting Gunite’s capacity and throughput, and improving product quality.

Changes  to the company’s executive team have come along with these facilities and  processes changes, Dauch noted. Seventy percent of the former leadership team  has been replaced or reassigned, he said, as part of a move to “restore  operational excellence and technological leadership.”

The company’s aggressive actions to “sell,  fix, or fix and grow” business units have been met with general support from  executives and workers who will be a part of the business going forward, Dauch  told Fleet Owner, noting that many people were just waiting for someone to come  along and “make things right again.”
 

The aftermarket will also continue to be a  focus for Accuride. The company has formed a Distribution Advisory Council for  aftermarket customers to help identify opportunities for improvement and  facilitate changes.

 

 

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