KS Huayu invests in new production shop

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KS Huayu AluTech GmbH is extending the Neckarsulm capacities with a new 5,000 m2 production shop for structural parts in aluminium.

The extension of the Neckarsulm production capacities costs around 35 million euros and is required by additional orders for non-I.C.-engine components including mountings for shock absorbers and suspension struts as well as cross members in aluminium. The company is also manufacturing battery trays for electric vehicles currently entering production.

In founding the company in 2014, first-tier auto supplier Rheinmetall Automotive had contributed its foundry operation at the Neckarsulm location to a 50:50 joint venture with Huayu Automotive Systems (Hasco), a member of China’s SAIC Group. KS Huayu specializes in the development and production of engine blocks and structural parts as well as battery trays and housings for electric motors for cars. The company also has plants at two further locations in Germany and six in China. With a production of more than five million units per year, KS Huayu is China’s biggest manufacturer of aluminium cylinder heads.

At the new production facility, KS Huayu covers the complete process chain from aluminium smelting via die-casting and heat treatment down to CNC finishing and final inspection. The new shop currently employs a workforce of 120 which together with the total 1,100 employees, means that the castings manufacturer now generates annual sales of 320 million euros at the Neckarsulm location.

Horst Binnig, CEO of Rheinmetall Automotive, comments: “For us, the new production shop at Neckarsulm emphasizes the move toward new production techniques and technologies making us further fit to cope with the challenges ahead in the wake of tomorrow's mobility.” The declared aim of Rheinmetall Automotive is for its foundry business to branch out at an international level, too. Binnig continues: “We continue to regard this area as an important component of our corporate strategy and intend, together with Hasco, to develop the merged companies into a leading international player in the market for automotive castings in aluminium.”

Given the growing demand for lightweight aluminium components, the company will benefit from sustained development potentials and KS Huayu AluTech is thus expanding its high-tech castings business with the addition of new and promising product sectors while in its core business, continuing as an innovative supplier to the global auto manufacturers.

 

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