Tupy to Increase Output of CGI Blocks by 25%

Over $220 million for two new casting lines, and more


Tupy Casting, the metalcasting division of the Brazilian engine manufacturer, has announced plans to increase production capacity for engine blocks by nearly 25%, from 300,000 to 370,000 metric tons/year. The core of this investment plan will be to increase production of compacted graphite iron.

The total value of the investment is estimated at more than $220 million (R$385 million). Engine blocks are not the only product category for which capacity will increase. Tupy also plans to increase output of connectors and profiles, with total output expected to rise from 480,000 to 670,000 tons by 2010.

Luiz Tarqunio Sardine, president of Tupy’s ironmaking division, indicated the company’s expansion is in anticipation of greater demand for CGI blocks from General Motors, which is expanding engine production in Brazil. He explained that the new capacity will consist of two new casting lines, though the investment will include modernizations and new equipment installations, as well as improve operational efficiency and environmental controls.

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