CHICAGO Shiloh Industries Inc. closed its acquisition of Contech Castings LLC, which makes high-pressure aluminum die cast parts for the automotive industry.
The purchase adds Contechs P2000 squeeze casting, ThinTech vacuum casting, and high-pressure conventional die casting capacity and depth to Shilohs high-pressure, high-vacuum casting capabilities, according to president and chief executive officer Ramzi Hermiz.
"One of the necessary advancements for removing weight from vehicles is going to come through increased optimization of aluminum components, which is driving demand for high-pressure, high-vacuum casting and structural squeeze cast components," he said.
"It made sense for us to strengthen our technology and add capacity with the addition of Contech to further enhance Shilohs position."
As automakers face pressures to meet the federally mandated fleet average of 54.5 miles per gallon by 2025, aluminum products are becoming part of the lightweighting solution.
Shiloh made two strategic acquisitions in December, purchasing Albany-Chicago Co. LLC for $55 million and buying a stamping plant in Anniston, Ala., from Atlantic Tool & Die-Alabama Inc. Both of those decisions were based on the desire to supply lightweight processed materials to customers (amm.com, March 22).
Valley City, Ohio-based Shiloh provides design, engineering and manufacturing of first operation blanks, engineered welded blanks, complex stampings, modular assemblies and highly engineered aluminum die casting and machined components serving the body-in-white, chassis, emission, powertrain, structural and seating needs of original equipment manufacturers and Tier 1 customers.
Contech Castings operates four foundries in Indiana, Michigan and Tennessee.