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Shiloh Launches HPDC Joint Venture in China

April 27, 2015
Auto parts supplier tied to squeeze-casting equipment builder in $30-million project High-pressure diecasting, squeeze casting capabilities “Major customers” want multi-regional suppliers Chinese R&D center to come

Shiloh Industries Inc. is forming a joint venture with Suzhou Sanji Foundry Equipment Co. Ltd. to produce aluminum diecastings at a new plant in China, using its own high-pressure diecasting technology and a proprietary squeeze-casting technology. Suzhou Sanji Foundry Equipment is a developer of machinery for diecasting, squeeze casting, and semi-solid casting, as well as prototype products and squeeze-cast components.

Shiloh operates multiple manufacturing operations in the U.S., Europe, and Asia, producing automotive components ranging from stampings and welded blanks to aluminum and magnesium diecastings, and precision machined parts for automotive bodies, powertrains, structural and seating components.

The new plant at Nantong, China, will produce Shiloh’s CastLight automotive aluminum high-pressure diecastings, starting in mid 2016.

Projected to be a $30-million investment, the greenfield plant will have high-pressure diecasting and squeeze casting capabilities ranging from 500 to 3,000 tons, as well as heating treating and precision machining capabilities. It will have approximately 130 employees at capacity. Specific product lines and volumes for the new plant were not announced.

”We are receiving very positive feedback from our customers who are excited about our launch of this technology near their China operations,” stated Brad Tolley, vice president, strategy and market development for Shiloh.  “Our recent business awards also confirm that our major customers are looking for suppliers who can serve them in multiple regions, especially with the continued expansion of global platforms.”

Shiloh will be the majority shareholder of the new venture, with 55% equity. The location is 45 miles from a new technology center that Shiloh is building in Shanghai, details of which it promised to reveal at a later date.

“We continue to expand our global footprint to meet the growing lightweighting needs of the automotive industry,” according to Shiloh president and CEO Ramzi Hermiz.