INDUSTRY NEWS
Hayes Lemmerz to Be Sold to Brazilian Company Wheel maker Hayes Lemmerz
International, Northville, Mich., has entered into an agreement to be pur- chased by Iochpe-Maxion S.A., Sao Paulo, Brazil. According to the terms of the
agreement, the global wheels busi- ness of Hayes Lemmerz will be purchased in an all-cash transaction for approximately $725 million and combined with the wheels businesses of Iochpe-Maxion. “One of our principal strategies is to sustainably grow our core business internationally,” said Dan Ioschpe, the company’s chief executive officer. “Tis transaction will position us well to partner with customers to offer technologically-advanced products and outstanding services to meet
their needs in every major geographic region for years to come.” Te acquisition, which is expected
to close during the first half of 2012, is subject to closing conditions, approval of the stockholders of Hayes Lemmerz and Iochpe-Maxion, and regulatory approvals. Te companies will continue to operate independently until the transaction is completed. “Automotive and commercial
vehicle manufacturers are expanding globally and seeking global suppliers with the resources to invest and grow with them,” Ioschpe said. “Vehicle manufacturers have many choices when it comes to the wheels they offer their customers, including both alumi- num and steel wheels.” Te two companies said they are
developing integration plans that build on their cultural similarities and best business and product develop- ment practices. According to the press release, management of the new company will be drawn from current management, and specific manage- ment appointments will be announced prior to closing. Te combined entity will have manufacturing locations in 13 countries and a presence in every major automotive region. “We look forward to a promis-
ing future with a long-term strategic shareholder like Iochpe-Maxion,” said Fred Bentley, chief operating officer of Hayes Lemmerz. “Tis transaction is in the best interests of our custom- ers. [It] is also in the best interests of our suppliers.”
Eagle Alloy Adding Capacity, Thermal Reclamation Unit Steel caster Eagle Alloy, Mus-
kegon, Mich., announced it will add 70,000 sq. ft. of manufac- turing space to its existing shell molding facility, with a portion of the addition devoted to thermal sand reclamation. According to the company’s top
executives, Eagle will spend $14 million over the next two years to make the additions. Te company expects to spend about $12 million on equipment, including shell mold and coremaking machinery, a heat treat furnace, additional melting capacity, and cleaning and inspec- tion capacity. “Te addition will add at least 33% to our existing capacity, which represents probably another 350 tons per month,” said John Work- man, the company’s vice president. Te addition also will include a spent shell sand thermal reclama- tion and coating operation, which was prompted by indications from Eagle’s sand supplier that demand increases from the hydraulic fractur- ing industry could lead to shortages of supply in the future. Workman said the bulk of the
Eagle Alloy is a shell mold job shop pouring carbon and stainless steels. It is adding capacity to accomadate customers in a variety of industries.
equipment for the addition has been ordered. Te company expects to com- plete the new manufacturing space by early next year and have the addition running by the end of 2013. Company President Mark Faza-
kerley said the decision to make the addition was based on a strong rebound of orders from a variety of Eagle’s customers. “We experienced the same dev- astating reduction of business in 2008-2009 that most manufactur- ing companies did,” he said. “We cut back by about 50%, but in 2010,
it started coming back strongly. We continued to develop new accounts, but besides new customers, our exist- ing customers started coming back. We began to [recapture] work that had been done overseas.” With its existing facility running at
full capacity and the new facility near- ly sold out, Eagle said it has slowed down its quoting of new projects. “I don’t see us going much beyond
this,” Fazakerley said. “We’re going to hold off a few months until we see where everything settles before we start quoting a lot more.”
November 2011 MODERN CASTING | 11
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