VAN NUYS, Calif.—Aluminum wheel supplier Superior Industries International Inc. has picked a site in Chihuahua, Mexico, for its newest plant, joining three others already located there.
Superior is budgeting about $125 million to $135 million for the plant, which will be rated at 2 million to 2.5 million wheels annually, the company said. Superior plans to break ground on the project by midyear and complete construction in two years.
The project will boost Superior's annual capacity 16 to 20 percent over the current 12.5 million wheels per year.
The Van Nuys-based company also reported a sharp drop in fourth-quarter profits.
"The company and the state of Chihuahua have agreed in principle to a series of incentives that reflect a continued partnership," Superior Chairman, CEO and President Steven Borick said, without elaborating on the nature of the incentives.
Regarding the choice of Chihuahua for the new plant, Borick said: "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. Accordingly, after a thorough evaluation of ways to deploy our capital, we have decided to expand our manufacturing footprint by constructing a new manufacturing facility in Mexico, where significant light vehicle assembly expansion has been announced or already is under way."
Superior supplies nearly all of the vehicle makers with assembly plants in North America.
The company reported a 93.2-percent plunge in fourth quarter net income to $2.7 million, which contributed to a 54-percent drop in net earnings for the fiscal year, to $30.9 million.
Revenue was essentially flat at $821.4 million last year, compared with $822.2 million in 2011.