Industries International Inc. plans to spend $125 million to
$135 million to build an aluminum wheel manufacturing facility
Groundbreaking is expected in
the middle of this year, with construction likely to be
completed two years later, the Van Nuys, Calif.-based aluminum
wheel maker said in remarks released with earnings data March
The facility, whose location has
not yet been chosen, will have an initial capacity of between 2
million and 2.5 million wheels per year, said Superior, which
currently makes about 12.5 million wheels per year.
"While our operations in Mexico
consistently have performed at class-leading levels, it has
been evident we are not currently positioned to participate
fully in North American market growth," Superior
chairman, chief executive officer and president Steven J.
Borick said in a statement. "Accordingly ... we have decided to
expand our manufacturing footprint."
Superior also plans to make
improvements to its existing operations in both the United
States and Mexico. Capital expenditures totaled $23 million in
2012, and Superior said it expects to boost investment at its
current plants in 2013. "We believe there are great
opportunities to improve the companys operating
performance," Borick said.
Superiors 2012 net income
fell 54 percent to $30.89 million from $67.17 million in 2011
on sales that were virtually even at $821.45 million.
Fourth-quarter net income plunged 93.3 percent to $2.69 million
from $40.19 million in the same period a year earlier on sales
that slid 3.1 percent to $210.02 million.
Superior said the decline was in
part due to lower aluminum prices, which it said hurt average
selling prices, as well as operational issues at its older
facilities, particularly in the United States.
Superior says it is the largest
manufacturer of aluminum wheels and light-duty vehicles in