Metal Techologies Inc., a foundry holding company, has formed a joint venture with a German automotive parts manufacturer that gives MTI a foothold in the European market for aluminum castings.
MTI is acquiring an interest in Sachs Giesserei GmbH, an iron and aluminum foundry in Kitzingen, Germany, owned by ZF Sachs AG. The terms of the investment are not detailed, but it includes a long-term supply agreement with SGG and a future takeover of the foundry by MTI.
Rick James, MTI chairman and CEO, says, “This important step fits with our strategy to become a global supplier to our customers wherever they need metal castings. It also adds the capability of aluminum castings to our product line, which is the fastest-growing part of our industry.”
James adds that the supply agreement will allow MTI’s North American foundries to expand their business with ZF Sachs, a diversified automotive-parts supplier.
SGG, the German foundry, serve automotive and other industrial customers in Europe, including DaimlerChrysler, Volkswagen, and Audi. ZF is its primary customer, which also supplies Europe’s major automotive customers. MTI expects to institute some new technical and marketing expertise to SGG’s iron castings business. While the deal is immediately effective, and the management of that organization will remain, once MTI gains full ownership of SGG it will become a wholly owned subsidiary.
MTI has five iron foundries in Ravenna and Three Rivers, MI; West Allis, WI; and Woodstock, ON. It also has a clutch and metal-machining plant in Garrett, IN.