Hayes Alters Ownership in Turkish Wheels Businesses

Nov. 17, 2003
Increases stake in aluminum operation; cuts back in steel

Hayes Lemmerz International bought an additional 35% of its joint venture in Manisa, Turkey, and now owns 60% of Jantas Jant Sanayi ve Ticaret A.S. The remaining 40% is owned by Inci Holding A.S., Cevdet Inci, and members of his family. Terms of the purchase were not revealed.

The operation -- now called Hayes Lemmerz Jantas Jant Sanayi ve Ticaret A.S. -- is a unit of Hayes Lemmerz' European Wheel Group.

In a related move, Hayes Lemmerz sold approximately 8% of its interest in Hayes Lemmerz Inci A.S. to Inci Holding A.S., reducing its ownership to 60%, with 40% held by Inci Holding A.S., Cevdet Inci, and members of his family. Hayes Lemmerz Inci produces automotive steel wheels. Again, terms were not disclosed.

Mustafa Zaim was named the managing director of Hayes Lemmerz Turkish Wheel operations. He will be responsible for both Hayes Lemmerz Jantas Jant Sanayi ve Ticaret A.S. and Hayes Lemmerz Inci A.S., and report to Fred Bentley, president of Hayes Lemmerz European Wheel Group.

Jantas was founded by Cevdet Inci established Jantas in 1968 to produce steel wheels for heavy truck and agricultural vehicle markets. It now produces more than 1.2 million wheels every year. Hayes Lemmerz bought into the venture when it acquired Lemmerz Werke GmbH in 1997.

Curtis Clawson, chairman and CEO of Hayes Lemmerz, looked forward to increasing market share in Europe and Asia through the additional stake.

Bentley said, "By adding Jantas to our other strategic commercial vehicle businesses, we have a very strong global offering in this market. This positions us very well for the rebound in tractor builds expected during the next few years. This acquisition improves our ability to meet customer needs in the very important Asia and Eastern Europe markets as well as leveraging our already strong global position. We are very pleased with this addition to our business."