Novocast’s Optimistic Outlook
Reacquired by Grede Holdings in 2011, the Mexican ductile iron caster has boosted capacity and looks to have a bright future. NICHOLAS LEIDER, ASSOCIATE EDITOR
Improvements to the pouring system have boosted annual capacity by 10,000 metric tons.
iron casting facility in Nuevo Leon, Mexico, that line is literally true. Grede Foundries Inc. was
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involved in the partnership that originally built Novocast in 2001, but exited the partnership in 2007. In early 2011, Grede Holdings, formed after consolidation with two other U.S.-based metalcast- ers, reacquired the metalcasting facility. In the ensuing three years, Novocast has operated at nearly full capacity while streamlining operations and, with significant investments in its melting/pouring department, boosting overall capac- ity by 15%. Te second time around, for both
parent company and metalcaster, appears to be a better match.
n one of rock ‘n’ roll’s iconic lines of defiance, Te Who’s Roger Daltrey sang, “Meet the new boss, same as the old boss.” For Novocast, a ductile
Reentering Northern Mexico Built as a $65 million partner-
ship between Grede Foundries, Milwaukee, and Grupo Proeza, a Mexican manufacturing conglomer- ate, Novocast’s 230,000-sq.-ft. facility served the Monterrey area’s numer- ous customers in its key industries of medium/heavy truck, automotive and other industrial applications. After its initial divestment in the
facility, Grede returned to the negoti- ating table in 2011 after undergoing a significant transformation. Grede Holdings was formed in 2010 with the consolidation of Grede Foundries Inc., Blackhawk Foundry (USA) and Cita- tion Corporation. Looking to reenter the Northern Mexican marketplace, Grede Holdings, based in Southfield, Mich., reached a deal to reacquire Novocast and nearby Teknik, a small iron caster also owned by Grupo Proeza that produced turbo housings, brackets and hubs.
“We share complementary product lines and equipment, which will add to our existing manufacturing capacity in support of our customer growth pro- jections in this expanding economy,” said Doug Grimm, president and CEO, Grede. Producing cast components from 1
lb. to 200 lbs. including axle carriers, differential cases and turbo hous- ings, Novocast had rebounded from the global recession of 2008-2009 to approach full capacity when it was reacquired by Grede Holdings. In 2013, the facility pursued the instal- lation of a pressure pour system that would boost production by 10,000 metric tons a year to accommodate increased customer demand. Te met- alcaster’s new ownership was capable of making the $2 million investment, which would only increase its ability to serve local customers. “It’s important for us to have a
footprint where we can work closely November 2014 MODERN CASTING | 25
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