CHICAGO Auto parts manufacturer Accuride Corp. has landed new long-term supply contracts as a result of its recent capacity expansions.
Evansville, Ind.-based Accuride, which makes aluminum and steel wheels and related components for the commercial vehicle industry, has invested $150 million over the past two years to restructure and expand its core wheel and wheel-end component operations and upgrade the capabilities of its four business units, president and chief executive officer Rick Dauch said at a heavy duty aftermarket exposition in Las Vegas.
Accuride also doubled its production capacity for forged aluminum wheels, while the installation of new machining and assembly equipment and casting upgrades at its Gunite business unit are 90 percent complete, Dauch said.
The new long-term contracts are with several key customers that represent more than 70 percent of Accurides core wheel business, the company said, adding that it also has secured new aluminum wheel business of up to $30 million per year.
Gunite has been designated as a preferred aftermarket source by a key vehicle maker and removed from new-business hold by all of its original equipment manufacturer (OEM) customers, allowing fleets to specify Gunite products when ordering vehicles, Accuride said.
"Thanks to the investments we have made in our core business, we are quickly regaining customers faith in our ability to support their needs while positioning ourselves for the commercial vehicle market recovery to come," Dauch said.
Accuride has planned more than $30 million in steel wheel facility upgrades through 2015. The company did not provide further details.