Not satisfied with being the world`s largest manufacturer by volume of aluminum-alloy wheel rims for bicycles, Alex Global Technology Inc. is now developing itself into a world-class maker of forged wheel rims for a wide variety of transportation vehicles including trucks, passenger cars, powered two-wheelers (PTWs), and all-terrain vehicles (ATVs).



The company is spending a total of NT$3 billion (US$90.9 million at NT$33:US$1) to set up Taiwan`s first integrated cold-forging production line. Around 4,000 forged wheel rims (mostly for trucks) will be produced on a trial basis in 2007; later on production will be expanded to include rims for passenger cars, ATVs, and heavy-duty PTWs, and annual output will hit five million units.

According to Alex`s assistant vice president, Max Huang, the company began planning its new production line back in 2002 following extensive evaluation and close collaboration with industry experts, research institutes, and educational institutions.

As the first step in its expansion project, the company spent three years building Taiwan`s first aluminum extrusion plant to ensure a stable supply of high-quality material. Its aluminum furnace was completed in early 2007, and trial production of forged wheel rims for trucks began in the first half of that year. Passenger car rims are expected to follow by year-end.

Forged aluminum wheel rims offer a number of advantages, Huang says, that make them worth the extra cost compared with steel or die-cast products. And their prices are expected to drop as increasing demand paves the way for greater economies of scale.

One advantage is light weight, leading to fuel savings. A 24.5-inch forged truck rim, for example, weighs only 22.5 kilograms, compared with 45-50 kg for a steel rim or 23-24 kg for a die-cast aluminum rim. The use of forged rims can result in fuel savings of 5% to 8%.

The Safety Advantage

A second advantage is safety; forged rims offer much better heat dissipation, which is especially important for long-distance trucks. A lower rim temperature results in less tire fatigue and better braking.

Cold-forged rims are also the hardest, Huang says, because the die-casting process always generates microscopic air holes that weaken die-cast rims and make them more subject to failure. To achieve the same hardness, Huang claims, a die-cast rim has to be 30% heavier than its cold-forged counterpart.

Although Alex is new to the forged wheel rim line, it intends to be a total-solution provider through the combination of a stable supply of the finest materials, the most advanced production equipment and technology, and outstanding design capability.



"As a newcomer," Huang comments, "we have to position our products clearly by offering not only the best quality but also state-of-the-art design. We chose to start out our forged-rim business with truck and bus products, because most original equipment (OE) rim suppliers provide traditional-type rims, with few styling changes, to truck and bus makers."

He adds that the increasing trend of outsourcing by European and American auto makers to Asian suppliers will smooth the way for his company`s forged-rim business.

"We`re devoting every possible effort to upgrading our forging technology to bring it even with, or even in advance of, our counterparts in Europe and America," Huang asserts. "Since the investment in a forging line is more than 10 times the cost of a die-casting line, and the level of technology required is also much higher, it will be some time before followers in mainland China are able to catch up. So we`re entering this new business at the right time, especially with auto makers, notably in the United States, increasingly adopting forged wheels."
(by Quincy Liang)