INDUSTRY news
Hayes Lemmerz to Be Sold to Brazilian Company Wheel maker Hayes Lemmerz
International, Northville, Mich., has entered into an agreement to be purchased by Iochpe-Maxion S.A., Sao Paulo, Brazil. According to the terms of
the agreement, the global wheels business 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 offi cer. “T is transaction will position us well to partner with customers to off er technologically-advanced products and outstanding services
to meet their needs in every major geographic region for years to come.” T e acquisition, which is expected
to close during the fi rst half of 2012, is subject to closing conditions, approval of the stockholders of Hayes Lemmerz and Iochpe-Maxion, and regulatory approvals. T e 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 off er their customers, including both aluminum and steel wheels.” T e two companies said they are
developing integration plans that build on their cultural similarities and best business and product development practices. According to the press release, management of the new company will be drawn from current management, and specifi c management appointments will be announced prior to closing. T e combined entity will have manufacturing locations in 13 countries and a presence in every major automotive region. “We look forward to a promising
future with a long-term strategic shareholder like Iochpe-Maxion,” said Fred Bentley, chief operating offi cer of Hayes Lemmerz. “T is transaction is in the best interests of our customers [and] our suppliers.”
Eagle Alloy Adding Capacity, Thermal Reclamation Unit Steel caster Eagle Alloy,
Muskegon, Mich., announced it will add 70,000 sq. ft. of manufacturing 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. T e 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 inspection capacity. “T e addition will add at least 33% to our existing capacity, which represents probably another 350 tons [of castings] per month,” said John Workman, the company’s vice president. T e addition also will include a
spent shell sand thermal reclamation and coating operation, which was prompted by indications from Eagle’s sand supplier that demand increases from the hydraulic fracturing industry could lead to shortages of supply in the future.
Eagle Alloy is a shell mold job shop producing carbon and stainless steel parts such as the castings above. The facility is adding capacity to accomodate work in several industries.
Workman said the bulk of the
equipment for the addition has been ordered. T e company expects to complete the new manufacturing space by early next year and have the addition running by the end of 2013. Company President Mark
Fazakerley 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
devastating reduction of business in 2008-2009 that most manufacturing companies did,” he said. “We cut back by about 50%, but in 2010, it
8 | METAL CASTING DESIGN & PURCHASING | Nov/Dec 2011
started coming back strongly. We continued to develop new accounts, but besides new customers, our existing customers started coming back. We began to [recapture] work that had been done overseas.” With its existing metalcasting
facility running at full capacity and the new facility nearly 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.”
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