April 19, 2007 — Nemak finalized the purchase of the Teksid Aluminum Poland metalcasting operation, continuing its takeover of various TK Aluminum Ltd. plants, first announced last November. Nemak, a subsidiary of Mexico's Grupo Alfa, originally agreed to buy six Teksid plants in North and South America, and Poland, plus a 40% share of a Chinese venture, for $496.8 million in cash, along with an 11.5% interest in the Nemak business. But, the terms of the sale were amended in January, and now call for TK Aluminum to receive $485 million in cash for seven plants, subject to adjustments, along with a 6.68% "synthetic equity interest" in Nemak after the sale closes.

Teksid Aluminum Poland, in Bielsko-Biala, near the Czech border, is a semi-permanent mold and high-pressure diecasting operation producing aluminum clutch housings, gearboxes, cylinder heads, cylinder head covers, and timing chain covers for customers that include Fiat Auto, Citron, Ford, Opel, Peugeot, Renault, and Toyota.

In March, Nemak closed the purchase of the North and South American plants, including an Alabama operation not included in the original sale. The sale of the Chinese venture stake is still pending.

According to TK Aluminum, the sale of the Polish plant involved approximately $56.1 million in cash, plus an additional 0.83% synthetic equity interest in the Nemak business.

In the past two years, Nemak has acquired a series of aluminum casting operations in Europe and the Western Hemisphere, from Rautenbach, Hydro, and Teksid, and now produces a range of engine blocks and other auto parts to Fiat, Ford, General Motors, Nissan, and Renault. Grupo Alfa CEO Dionisio Garza Medina recently predicted Nemak's next expansion would be into China, where it is likely to build new capacity because attractive targets do not yet exist.