The Architecture of a Metalcasting Giant


The merger of Citation Corp. and Grede Foundries made big news at the end of 2009, and the two metalcasting icons now are working through their combination.


Shea Gibbs, Senior Editor


Grede Holdings LLC Novi, Michigan


Facilities: 13 metalcasting, 2 machine shops.


Capabilities: 1-2,000 lb. iron castings. Annual Capacity: 575,000 tons. Employees: 3,200.


Markets Served: Agriculture, light vehicle, construction, diesel engine, industrial, medium and heavy truck, mining, rail, wind energy.


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he call came in around noon on Dec. 23, 2009, less than 48 hours before Christmas, and a day when many around the metal- casting industry would be out of the office. “You didn’t get the whole story,” said the


anonymous tipster on the line. MODERN CASTING had reported earlier—at 10:23


that morning—that the purchase of Grede Foundries, Mil- waukee, by a private equity firm had been approved by the courts and would be completed in the first quarter of 2010. The anonymous tipster said he had seen a letter that took


the story a big step forward. The letter, from an executive of the private equity firm, was addressed to Grede’s suppli- ers. It said the company was being combined with Citation Corp., Novi, Mich. By 12:38 p.m., the full story was becoming clear. Two


of the industry’s major players would be merged in a little more than a month, and the combined companies (including Citation’s recent purchase of Blackhawk Foundry & Machin- ing Co., Davenport, Iowa) would become one of the largest conglomerations of metalcasting facilities in the U.S. The Citation name would be no more, and a new Grede would be born, with 13 metalcasting facilities and two machine shops across the country employing 3,200 and projecting 575,000 tons of capacity and nearly $700 million in sales. “This is a case study in American manufacturing business


The new Grede operates 13 metalcasting facilities (six legacy Grede plants and seven legacy Citation facilities) and two machine shops. Shown is the company’s national footprint.


MODERN CASTING / August 2010


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