Hayes Lemmerz Increases Ownership in Turkish Joint Venture

Hayes Lemmerz International, Inc today announced that it has increased its ownership stake in its Turkish aluminium wheel joint venture, Jantas Aluminyum Jant Sanayi ve Ticaret AS (aka Jantas Aluminum Wheels), to 60 per cent.

“Increasing our stake in this joint venture further improves our ability to meet customer needs in the very important Turkish and European markets as well as leveraging our already strong global position. We continue to transform our global footprint to meet the very demanding customer requirements in the aluminium market. We expect this facility will follow the success we have had in our other growing low cost locations,” said Fred Bentley, president of Hayes Lemmerz’s International Wheel Group.

Hayes Lemmerz and Inci Holding AS, one of the other two original joint venture partners in Jantas Aluminum Wheels, acquired the 35 per cent interest in the joint venture previously held by Cromodora Wheels SpA. As a result of the transactions, Hayes Lemmerz increased its interest from 40 per cent to 60 per cent, while Inci Holding AS has increased its share from 25 per cent to 40 per cent.

“We are excited to build on the advantage of an already successful partnership with the Inci Group in Turkey who provide valuable local knowledge of the Middle East market and will provide additional efficiencies for our operation,” Mr Bentley added.

The joint venture is expected to eventually produce 1.5 million wheels annually and will start production in early 2006. Mustafa Zaim, managing director, is responsible for Hayes Lemmerz’s Turkish Wheel Operations. Mr Zaim reports directly to Mr Bentley.

Hayes Lemmerz has expanded operations in Mexico, Brazil, Czech Republic, and Thailand in the recent past. The operation in Turkey is the next step in building on the recent success of the low cost focus of operations.

Hayes Lemmerz International, Inc. is a leading global supplier of automotive and commercial highway wheels, brakes, powertrain, suspension, structural and other lightweight components. The company has 37 facilities and over 10,000 employees worldwide.

Inci Holding is one of the major groups in Turkey, operating in automotive, logistics, insurance, construction, and white goods sectors. The group has 17 companies and joint ventures, employing 1,500 people.