Foundry group Metal Technologies Inc. has purchased a specialty machining operation in Mexico from AAA Sales & Engineering, nearby MTI’s gray and ductile iron foundry in San Luis Potosi. The plant’s management team will remain, operating the facility as Metal Technologies Maquinados de SLP.
The terms of the acquisition were not announced.
The machining operation is close to a General Motors crossover vehicle assembly plant, noted Nicholas D. Heiny, general counsel for MTI. “Growth of existing U.S. business lines is substantially strengthened by having a presence in Mexico. We view this as definitely a way to strengthen our U.S. presence by growing in Mexico,” Heiny stated.
“MTMS was one of our first and largest customers in Mexico,” MTI president and CEO Matthew Fetter commented about the purchase. “We knew the management team very well for many years, and the MTMS team was the critical part of the acquisition. In addition, MTMS’ ability to machine a wide size range of parts with complex operations and tight tolerances was complementary with our existing machining experience.
“We believe customers benefit from casting and machining solutions close to their operations,” Fetter added. “MTI is the only company that can do this in Mexico as well as the U.S.A.”
MTI, headquartered in Auburn, IN, produces gray iron, ductile iron, and austempered ductile iron castings, as well as aluminum diecastings, at four locations in Indiana, Michigan, Minnesota, in addition to the Mexican iron foundry. The group also has a high-pressure diecasting plant for aluminum products in Tennessee, and a specialty machining operation in Michigan.
Each plant is set up to produce castings for particular markets, including automotive, heavy trucks, hydraulic systems, compressors, appliances, small engines, railroad, trailer axle, and general industrial customers.