NEW YORK Two automotive suppliers of precision chassis castings and machining parts, Diversified Machine Inc. and SMW Automotive LLC, have merged to form a $1.2-billion company named Chassix Inc.
The new company will be one of the few global casting and machining suppliers to offer complete in-house services, according to Los Angeles-based investment firm Platinum Equity LLC, which purchased both companies and oversaw the merger.
"There is a huge demand for high-quality advanced casting and machining suppliers, particularly those that are skilled in casting traditional ductile iron as well as those able to meet the growing demand for precisely machined lightweight aluminum components," Robert J. Remenar, president and chief executive officer of the new company, said. "The automotive industry was missing a truly global player with the full-service capabilities and operations to serve manufacturers on global platforms, and now Chassix fills that role."
The newly combined business will deliver iron and aluminum chassis components to the global automotive industry. Chassix is slated to move into its headquarters in Southfield, Mich., in June, according to local media reports.