Accuride Corporation (NYSE: ACW) and CLN Group, a supplier of steel and metal-formed components and assemblies to the global automotive industry, announced that Accuride has acquired a majority stake in steel wheel manufacturer Gianetti Ruote S.r.l. from the MW Italia wheels division of CLN S.p.A.
CLN, through MW Italia, will retain a minority interest in the business. The partnership – which gives Accuride immediate long-term supply contracts with key global OEM customers in Europe – advances Accuride’s strategy to become a leading wheel supplier to the global commercial vehicle industry. The business will retain its headquarters and principal manufacturing and engineering facility in Ceriano Laghetto near Milan, Italy. Accuride has agreed to invest over the next 36 months to improve Gianetti’s manufacturing operations in exchange for its majority equity position.
“Acquiring a majority stake in Gianetti Ruote establishes Accuride as a tier-one wheel supplier to Europe’s leading commercial vehicle OEMs,” Accuride President and CEO Rick Dauch said. “The partnership enables us to strengthen relationships with our global OEM customers by serving their needs in Europe, build closer ties to key regional OEMs and grow Gianetti’s business. We will improve the competitiveness and profitability of the business by combining select strategic investments with our rigorous quality and lean manufacturing systems to help the Gianetti wheel-production facility achieve world-class levels of quality and operational excellence.”
“I believe that our agreement with Accuride will prove to be an extraordinary opportunity for Gianetti to be not only a European player, but a global one,” said Gabriele Perris Magnetto, CEO of CLN S.p.A. “Gianetti’s strong product design expertise will be exported globally, thus reinforcing its product leadership in the new venture.”