EDITORIAL
It’s Tough to Think Global, Act Local T
upy has agreed to purchase Cifunsa Diesel and Technocast. Tis story, which hit internet news outlets the week of Nov. 14,
is big news in the global metalcasting world. The Brazilian-based Tupy, already one of the
world’s largest and best known casters of iron engine blocks and cylinder heads, has agreed to purchase two of Mexico’s largest iron engine block and head casting facilities. One of the facilities, Technocast, is 33% owned by Cater- pillar. According to Tupy, the goal of these ac- quisitions is to strengthen its market presence in North America. The company said that once the acquisitions are complete, it will be the largest iron cylinder block and head manufac- turer in the world. Based on published reports, the group will have the capability to produce at least 700,000 metric tons of iron castings. When this news became public, some ques-
tions immediately surfaced. • How will this purchase affect iron block and head producers in the U.S. ?
• How will engine manufactur- ers react with one less major supplier from which to source?
• Who is the lucky pig iron sales- person with the Tupy account? While most of you will find
this article interesting, it won’t have an immediate impact on your firm. Your interest in the story probably rests on how it continues to shape the world in which we work and play and, ultimately, how this acquisition and continued global consoli- dation is going to affect you in the long term. Now consider an article
of the magazine. The metalcaster won Casting of the Year in our 2007 Casting Competition for an agricultural seed boot com- ponent and is a big believer in the power of conversions to casting. The firm also allowed two of our editors to work in the facility for three days, making molds and pouring metal. But beyond my personal sentiment, this story is one that probably resonates with most of you, as it is all too familiar. Your facility or one you know probably has or is undergoing a similar struggle. Te same decision-making process Smith is going through may uncover some ways your facility can approach its issues. Tis is going to help you in both the short term and long term. Te world into which
“Te world into
which most of your metalcasting facilities were
born is drastically different from the world
about Smith Foundry, Minne- apolis, that ran in the Min- neapolis Star Tribune the same week as the Tupy news. Te iron caster is being hamstrung by local officials because it wants to expand while the county wants its land for other uses. A planned and paid for expansion of its sand system is going to have to be reconfigured because of a rezoning issue. Smith’s plan for a new dust collection system also is being held up due to noise ordinances origi- nally passed to control local bars. I will admit, I am a fan of Smith Foundry and have mentioned them before on this page
that surrounds them now.”
most of your metalcast- ing facilities were born is drastically different from the world that surrounds them now. In today’s world, your facility has to pay close attention to the actions of Smith Foundry and its local county officials, while also keeping an eye on Tupy and its actions globally. “Tink globally, act
locally” is playing out right before our eyes.
Alfred T. Spada, Publisher/Editor-in-Chief
Happy holidays from your friends at MODERN CASTING. May 2012 bring joy to your life.
If you have any comments about this editorial or any other item that appears in MODERN CASTING, email me at
aspada@afsinc.org.
December 2011 MODERN CASTING | 7
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