GF Casting Solutions has sold its iron casting foundry in Herzogenburg, Austria, to MRB FerCon GmbH, a group established by Markus Rosenthal and Ralf Bachus, both former GF executives, in order to conduct the purchase. The foundry has about 250 employees and generates annual sales of approximately $75.25 million (CHF 75 million.)
“Together with our employees, we look forward to further developing the Herzogenburg site,” Rosenthal stated.
The transaction was effective September 30, and though no value was reported for the sale, GFCS noted it has extended an estimated $12-million loan (CHF 12 million) to the buyer to finance the purchase.
The sale completes a process begun more than a year ago to emphasize lightweight initiatives in the major markets for castings, including automotive and aerospace. “The fast-growing demand for aluminum and magnesium castings worldwide calls for a sustained increase of our presence in this sector,” according to a statement in 2018, when GFCS completed a similar sale of iron foundries at Mettmann and Singen, Germany. Those operations likewise were sold to onetime GF executives.
“With this divestment, we are consistently implementing our Strategy 2020,” commented GF group CEO Andreas Müller. “We are pleased to divest the site with all 250 employees to an experienced and proven management team with comprehensive foundry and sector knowledge. Also with this transaction, the focus is on continuity for customers and employees.”
In its present configuration, GF Casting Solutions consists of light-metal foundries in Altenmarkt and Hezogenburg, Austria; Leipzig and Werdohl, Germany; Arad and Pitesti, Romania; and Suzhou, China.
The group continues to cast ductile iron for automotive and commercial vehicle parts at Kunshan, China.
GFCS is part of the GF Linamar joint venture in Mills River, NC, a casting and machining operation for aluminum and magnesium auto parts.
Also, GFCS operates GF Precicast SA, an additive manufacturing operation in Stabio, Switzerland.