Intermet Contracted to Supply Castings to Metaldyne

Nov. 20, 2006
Metaldyne's merger with Asahi-Tec delayed

November 20, 2006 — Intermet Corp. has entered into an exclusive supply agreement with Metaldyne Corp, to provide cast-metal components for its product lines through 2007. Metaldyne designs and produces engine, driveline, and chassis products.

No value was announced for the contract. The castings will be produced at Intermet's Columbus, GA, and Radford, VA, foundries.

Metaldyne, Plymouth, MI, designs and produces components for automotive engine, driveline, and chassis systems. In late August it announced a $1.2-billion merger with Japan's Asahi-Tec, which produces cast iron and aluminum components for transport and construction markets. That deal has been delayed by two months, Asahi-Tec stated last week. Metaldyne is said still to be discussing terms of the purchase with its debtholders.

"We are extremely pleased with Metaldyne's decision to use our products and we look forward to continuing our close working relationship,” stated Intermet Domestic Ferrous Group president Steven Lake. “Metaldyne's decision is indicative of our high quality and consistent delivery performance."