GF Casting Solutions to divest two European automotive iron casting plantsVolker Karow
The trend towards lighter vehicles continues to have a substantial impact on the automotive industry. In this context, GF Casting Solutions, a division of GF, will have a stronger focus on light metal casting whilst reducing its presence in iron casting in Europe. As a consequence, the German iron casting plants located in Singen and Mettmann have been divested to members of the management of GF Casting Solutions, effective retroactively as from 1 December 2018.
The fast growing demand for aluminium and magnesium castings worldwide calls for a sustained increase of our presence in this sector. Accordingly, GF Casting Solutions is building up new capacities in the US, Romania and China whilst extending its offering towards ready-to-mount parts. Moreover, the division is investing into its promising super alloy components business for aircraft engines and industrial gas turbines, following the acquisition of Precicast Industrial Holding SA, Switzerland, in April 2018.
In line with this portfolio re-focusing, the two iron casting plants in Singen and Mettmann with a dedicated workforce of 2,000 employees and a combined sales of approx. CHF620 million have been acquired by Fondium B.V. & Co. KG, Mettmann. GF remains a 20% investor for a transition period. Both parties agreed not to disclose the transaction price.
Fondium B.V. & Co. KG has been founded by three current managers of GF Casting Solutions, Achim Schneider, Arnd Potthoff and Matthias Blumentrath. The three executives have together more than 40 years of experience in the industry. The new owners will continue all operating activities at the facilities.
Yves Serra, GF CEO, comments: “The reshaping of its portfolio will allow GF Casting Solutions to better leverage opportunities in light vehicle structures and aircraft engine components. With Fondium we found a partner whose owners have an extensive expertise in the casting business, able to ensure continuity for our customers and secure the further development of the two companies outside of GF.”