Kaiser, Accuride Plan Wheel Venture

Kaiser Aluminum Corp. announced a deal Wednesday that could boost its share of the nation’s commercial transportation market.

The Houston-based company, which employs 2,600 people in Spokane, said it plans to form a global joint venture with Henderson, Ky.-based Accuride Corp., the largest builder of commercial steel rims and wheels in North America.

Each company will own 50 percent of the yet unnamed joint venture, which will produce aluminum wheels for light and heavy trucks and trailers.

The companies hope to launch a multimillion-dollar modernization of existing facilities to increase production capacity of heavy aluminum wheel pieces by at least 40 percent. That would increase annual production to more than 500,000 pieces.

As part of the deal, Kaiser will receive an undisclosed amount of cash in exchange for wheel manufacturing assets at its Erie, Penn., facility.

The transaction, if approved by company boards, is expected to close this year.

, DataTimes