GM to invest more than $120 million in casting operations at Saginaw, defiance facilities.

General Motors (GM) will invest $63 million in its Saginaw, Mich., casting plant for a new semi-permanent mold process and $61 million in precision sand casting technology at its Defiance, Ohio, plant.

The investment in Saginaw, which will allow the production of cylinder heads for 3.6-L high-feature V-6 engines, follows closely on the heels of a multi-million-dollar installation of precision sand manufacturing capabilities at the Saginaw Metal Casting Operations (SMCO). The latest investment includes plant renovation and installation of new tooling and machinery to support the semi-permanent mold casting process. Construction should begin in the spring of 2009 and is targeted for completion in January 2011. The project will retain about 130 hourly employees.

GM's precision sand technology has been under development for several years and went into full production at SMCO earlier this year. The company will begin installation of the technology in the Defiance plant in June, with production slated to begin in December 2009. The investment includes plant renovation and installation of new tooling and machinery across a 120,000-sq.-ft, portion of the plant. Defiance will produce aluminum engine blocks for the same 3.6-L high-feature V-6 engines that receive heads from Saginaw. The Defiance project will retain about 120 hourly jobs. The 3.6-L high feature V-6 engine has applications in the GMC Acadia, Saturn Outlook and Buick Enclave.

Precision sand casting involves a resin-bonded sand that forms a mold, which shapes the contours of the engine block to be produced. The sand is cured into a solid exterior mold. The process allows the use of cast-in-place iron liners, pressurized aluminum filling and produces a high degree of dimensional accuracy. It will be used at Defiance to make blocks for the Cadillac CTS, SRX and STS, and the GMC Acadia, Saturn Outlook and Buick Enclave crossover SUVs.

In 2006, SMCO produced more than 421,646 aluminum engine blocks and 1,872,336 aluminum engine cylinder heads. Aluminum blocks and heads manufactured at SMCO are used in the Vortec 4200 I-6 engines that power the Chevrolet TrailBlazer and GMC Envoy; and the Vortec 4800, 5300, 6000 and 6200 V-8 engines that power GM's fullsize SUVs and pickups, such as the Chevrolet Tahoe, Suburban, Avalanche and Silverado; GMC Yukon, Yukon XL and Sierra; and Cadillac Escalade, ESV and EXT.

In 2006, the Defiance plant produced 1,423,368 gray iron engine blocks, 1,078,497 gray iron cylinder heads, 206,577 aluminum engine blocks, 154,055 aluminum cylinder heads, as well as malleable iron transmission parts and ductile iron crank shafts. Gray iron cylinder blocks and cylinder heads manufactured at Defiance are used in the Vortec 4.8-L, 5.3-L and 6.0-L V-8 engines that power GM's full-size SUVs and light-duty pickups and the Duramax 6.6-L V-8 diesel engine that powers the Chevy Silverado HD and GMC Sierra HD pickups. Aluminum engine blocks and cylinder heads produced at Defiance are used in the 3.0-L in-line four-cylinder and 3.7-L five-cylinder engines that power the Chevrolet Colorado, GMC Canyon and Hummer H3.

The GM Powertrain SMCO management, UAW Local 668 and IAM Local 2839 leadership negotiated operating agreements that improve operational effectiveness, according to a GM press release. The agreements also address processes and methods to improve production quality and safety.

"On behalf of GM, I commend the United Auto Workers, UAW Local 668, IAM Local 2839 and Michigan's leaders on the state and local levels," Jones said. "Working together we were able to build a competitive business case to support this investment in Michigan. The $63 million investment announced today brings GM Powertrain's total Michigan investments in the past year to more than half a billion dollars." The GM Powertrain Defiance plant management and UAW Local 211 leadership negotiated similar agreements.

The SMCO facility opened in 1918 and is General Motors' largest aluminum producing facility. The new semi-permanent mold process becomes the fourth method for casting aluminum at SMCO. The plant employs 924 hourly and 167 salaried workers and has an annual payroll of $100 million. GM Powertrain's Defiance casting plant employs 1,554 hourly and 246 salary workers and has an annual payroll of $135 million.

MODERN CASTING will profile Saginaw Metal Casting Operations in the August issue.