SÃO PAULO -- Iochpe-Maxion (B3: MYPK3) through its wheels business, Maxion Wheels, announced the strategic expansion of its light vehicle aluminum wheels business in South America with the redeployment of existing global assets to Brazil, and the acquisition of a 50.1% shareholding in Polimetal, a leading producer of aluminum wheels in Argentina.

“Passenger car sales continue to rise across South America, with our wheels business, especially light vehicle aluminum wheels, continuing to gain share in Mercosur,” stated Pieter Klinkers, President and CEO of Iochpe-Maxion. “To address this growing market and corresponding aluminum wheel demand, Maxion Wheels is implementing three strategic initiatives. First is the utilization of our global operations, together with our domestic forces in Brazil, to support the immediate additional demand. Second is the redeployment of existing global assets to our two Brazilian light vehicle aluminum wheel plants in Santo Andre and Limeira. And lastly and most strategically, we are proud to announce a formal partnership in Argentina through Polimetal. They have been a long-term strategic- and well-respected supplier of aluminum wheels to OEMs producing in the local market.”

The Polimetal share transaction, consummated today, will be submitted to the Argentinean competition authority, according to local applicable laws.

Klinkers concluded, “We are confident our strategic actions in South America are putting in place the level of service and high-quality wheel output our customers need to meet both their short- and long-term demands.”