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Harley-Davidson to purchase cast motorcycle wheel supplier.

Harley-Davidson Inc., Milwaukee, announced that it has entered into a business sales agreement to purchase the majority of the assets of Castalloy, North Plympton, Adelaide, Australia, its supplier of cast motorcycle wheels and hubs.

The U.S. motorcycle manufacturer has had a long business relationship with the supplier, which has been in voluntary administration since late 2004 as part of the insolvency of Ion Automotive Ltd., Hawthorn, Victoria, Australia.

Under terms of the arrangement, Harley-Davidson is establishing an entity called New Castalloy as a wholly-owned manufacturing operation. New Castalloy is expected to employ approximately 300 people at the North Plympton site. Harley-Davidson expects to close on the transaction, which is contingent on the completion of certain arrangements and obtaining operating licenses, toward the end of September.

"Castalloy has been a valued supplier to Harley-Davidson for more than two decades," said Matt Levatich, Harley-Davidson vice president of materials management. "We carefully assessed our sourcing options for this critical motorcycle component going forward, and Castalloy demonstrated unique capabilities."
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Title Annotation:North America
Publication:Modern Casting
Date:Oct 1, 2006
Words:166
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