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SinterCast Notes Rising CGI Series Production

July 21, 2020
Compacted graphite iron output is returning to pre-pandemic levels, but foundries' near-term visibility remains uncertain, the developer noted.

SinterCast AB reported all the foundries producing compacted graphite iron using its licensed process technology had returned to service by early June, following the suspended operations in various countries due to the COVID-19 pandemic. It noted that June 2020 SinterCast CGI series production increased for the second consecutive month to an annualized rate of 2.2 million "engine equivalents," or 44,000 kg (each engine equivalent representing 50 kg of CGI.) The June annualized rate corresponds to approximately 67% of SinterCast's 2019's full-year run-rate of 3.3 million engine equivalents (66,000 kg.)

Through the first six months of 2020, SinterCast series production is 2.25 million engine equivalents, or 50,000 kg — which represents 69% of the January-June 2019 annualized series production. "The initial recovery is progressing well, but the near-term visibility from our foundry customers and OEM end-users remains low," observed SinterCast president and CEO Dr. Steve Dawson. "We will continue to monitor the series production over the summer period to determine the difference between the initial inventory rebuild and the ongoing market demand.”

Stockholm-based SinterCast licenses a process control package used by foundries to produce compacted graphite iron (CGI), a lightweight cast iron that offers greater tensile strength, stiffness, and fatigue strength than gray iron or aluminum. The series production of CGI mainly involves diesel and gas engine manufacturers seeking to reduce weight, noise, and emissions for their designs.

SinterCast’s CGI process control system is centered on a sampling and testing technology that has been licensed by numerous foundries and research centers worldwide.

New SinterCast installations scheduled for the remaining months of 2020 include a System 4000 Plus at China's FAW Foundry Co. Ltd. and the new Scania foundry in Sweden during the second-half of 2020. “With the positive outlook for installation revenue in 2020, the annualized series production of 1.6 million engine equivalents (32,000 kg) in the second quarter is approximately equal to our current breakeven volume," Dawson commented.