GF Casting Solutions to divest two European automotive iron casting plants
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 iron casting plants located in Singen and Mettmann (Germany) have been divested to members of the management of GF Casting Solutions, effective retroactively as of 1 December 2018. This portfolio reshaping and the resulting regional footprint adaptation are fully in line with GF's 2020 strategy. The strategic EBIT margin objectives will be increased to 9-10%. The transaction is profit neutral.
The fast growing demand for aluminum 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 (Germany) with a dedicated workforce of 2'000 employees and a combined sales of approx. CHF 620 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.»
Achim Schneider, co-owner and spokesman of the Fondium Group, states: «With Fondium we create an agile, owner-operated automotive supplier with a clear market focus. We are looking forward to create a successful future together with our 2'000 employees.»
GF will conduct an audio webcast as well as a conference call related to this transaction on 6 December 2018 at 10:30 a.m. CET. The audio webcast will be accessible on the investors section of the GF website, along with the accompanying presentation slides.
In order to register for the conference call, please dial the following numbers 10-15 minutes before the start of the presentation:
Switzerland/Europe: +41 (0) 58 310 50 00
UK: +44 (0) 207 107 06 13
USA: +1 (1) 631 570 56 13
For more information, please contact:
Beat Römer, Head of Corporate Communications GF
+41 (0) 52 631 26 77, email@example.com
Trade press: Tina Köhler, Head of Marketing & Communications GF Casting Solutions
+41 (0) 52 631 21 15, firstname.lastname@example.org
Fondium B.V. & Co. KG: Achim Schneider, Co-owner and spokesman
+49 (0) 177 444 34 45, Achim.R.Schneider@gmail.com
GF comprises three divisions: GF Piping Systems, GF Casting Solutions, and GF Machining Solutions. Founded in 1802, the Corporation is headquartered in Switzerland and is present in 34 countries with 136 companies, 57 of them production facilities. Its 15ʼ835 employees generated sales of CHF 4ʼ150 million in 2017. GF is the preferred partner of its customers for the safe transport of liquids and gases, lightweight casting components, and high-precision manufacturing technologies.
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