CLEVELAND (Dec. 19, 2016) — Arconic Inc. the former engineered products business of Alcoa Inc., has struck forged aluminum wheel supply deals with a number of customers valued at more than $450 million.
The largest of the deals, Arconic said, is a long-term agreement with truck maker PACCAR Inc. for Kenworth- and Peterbilt-brand trucks.
The deals cover supply contracts in North and South America, Europe and Asia, Arconic said.
"This new agreement builds on our decades-long partnership with PACCAR to deliver premium performance wheels to PACCAR customers," said Merrick Murphy, president of Arconic Wheel and Transportation Products.
"Our forged aluminum truck wheels are the lightest commercial vehicle wheels on the market, and they have unbeatable strength and corrosion resistance, meaning our customers can carry more payload, more efficiently and spend less on maintenance…."
As part of the agreement, PACCAR customers will have access to Arconic's entire portfolio of Alcoa wheels, including the recently launched lightweight Ultra ONE wheels. Made with Arconic's proprietary "MagnaForce" alloy, the wheels are 17-percent stronger than standard aluminum wheels, Arconic claims.
Converting to aluminum wheels from steel can yield a weight advantage of up to 1,400 pounds, Arconic said.
"PACCAR is committed to uncompromising engineering and industry-leading designs that meet and exceed our customers' expectations," said Bill Jackson, PACCAR's vice president of global purchasing.
Over the past year, Arconic signed more than a dozen other contracts in North and South America, Asia and Europe with customers in the truck, trailer, bus and RV segments.
The wheels being supplied are produced in Arconic Wheel and Transportation Products plants in Monterrey, Mexico; Kofem, Hungary; Suzhou, China; and Cleveland.