India’s Sanmar Group has sold its ferrous casting operations to Dynamatic Technologies, another Indian company that supplies components to aerospace and automotive OEMs, including Airbus, Deere & Co, and Ford Motor Co.
The value of the cash deal was not released. It includes the Eisenwerke Erla GmbH iron foundry in Erla, Germany, that Sanmar bought in January 2007. Eisenwerke reportedly was established over 600 years ago but now has a modern operation producing complex iron castings for automotive niche markets.
"This acquisition is an important milestone for us,” stated Dynamatic CEO and managing director Udayant Malhoutra. “We are currently in the process of de-merging our existing automotive business into a wholly-owned subsidiary JKM Erla Automotive Limited. By combining its existing holdings with Eisenwerke, Dynamatic intends to supply complex automotive castings like turbocharger components to European OEMs, and to improve its design and development services.
"The world is moving towards fuel efficiency and emission control and is adopting turbochargers," said Malhoutra.
Dynamatic has been building its automotive supply business for 14 years, in India and Europe. In October 2008, it acquired the British aerospace engineering and tooling group Oldland CNC,
Sanmar is a conglomerate that intends to develop its other core businesses, namely chemicals and engineering castings. "The exit is part of a clear strategy to again concentrate on core activities. The deal releases valuable financial and management resources," according to deputy chairman Vijay Sankar.
Indian Manufacturer Buying into European Castings Market
Dynamatic Technologies buys Eisenwerke Erla from Sanmar