MTI, Quimmco to form joint venture, operate Blackhawk Mexico.
Metal Technologies Inc. (MTI), an Auburn, Indiana-based metalcaster, and Quimmco, a Mexican industrial conglomerate, have agreed to jointly own and operate Quimmco's Blackhawk de Mexico, S.A. de C.V. (Blackhawk), an iron casting facility located in Santa Catarina, Nuevo Leon, Mexico, serving the North American market.
In making the announcement, MTI Chairman and CEO Rick James said the joint venture will take advantage of MTI and Quimmco's strengths through combining Blackhawk and MTI's iron foundry technology, expertise and best industrial practices, as well as customer portfolio and supplier base.
"We are pleased to be able to partner with Quimmco which is a highly respected Mexican business with a widespread range of automotive, agriculture, heavy duty truck and industrial customers throughout the NAFTA region, "James said. "Many of MTI's current customers have recognized the growing importance of the Mexican automotive industry in North America and have urged MTI to establish manufacturing capabilities in Mexico."
Jesus Barrera, director general, Quimmco, echoed James and his hopes for the new partnership. Barrera sees it as a way for the facility to grow and continue to meet the needs of clients, both now and in the future.
"The goal of Blackhawk foundry is to grow with our customers to serve the quickly expanding Mexican automotive industry and general economy," Barrera said. "The synergies of Quimmco's experience and Metal Technologies' wide reach into major automotive customers will help assure Blackhawk's continued growth."
MTI has agreed to acquire 49% ownership of Blackhawk. MTI and Quimmco have agreed to make additional investments to expand Blackhawk's manufacturing capabilities and diversify its customers and markets.
The transaction is expected to close at the end of the first quarter of 2016.
MTI has seven manufacturing facilities in Indiana, Michigan, Minnesota and Tennessee. It produces gray and ductile iron castings, aluminum castings, tooling and machined parts for the automotive, truck, small gasoline engine, appliance, air conditioning, medical device and other markets.
It employs approximately 1,300 people and has annual sales in excess of $450 million.
Blackhawk de Mexico is a subsidiary of Quimmco producing gray and ductile iron castings for clients in Mexico and the U.S.
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|Title Annotation:||INDUSTRY NEWS; Metal Technologies Inc|
|Date:||Feb 1, 2016|
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