- Strategic expansion
- Two aluminum diecasting plants, Disamatic iron foundry
- 300 workers remaining
Metal Technologies Inc., Auburn, IN, has purchased Key 3 Casting LLC for an undisclosed price, doubling the number of its operating locations to six in the process. Adding the three former Intermet Corp. plants also introduces aluminum diecasting to MTI’s gray and ductile iron casting capabilities.
“The Key 3 acquisition is an integral part of MTI’s strategic plan to grow our metalcasting capabilities to serve our customers’ long-term needs,” stated Metal Technologies president Matthew Fetter. “The Key 3 acquisition gives us diecasting, squeeze casting, value-add services, and small ductile-iron casting capability. In addition, the location in Jackson, Tenn., provides us with a platform to meet the growth of manufacturing in the south.”
Metal Technologies Inc. consists of foundries in Ravenna and Three Rivers, MI, and the former Auburn Foundry in Indiana. It produces gray iron castings up to 80 lb., and ductile iron castings weighing up to 40 lb., for automotive and medium/heavy truck components, as well as trailer manufacturing, smaller engine products, appliance and compressor markets, and various other applications.
Metal Technologies has about 700 employees, and estimated annual sales revenue of $365 million.
The Key 3 holdings are:
• A high-pressure aluminum diecasting complex in Jackson, TN, with two plants and a total of 14 diecasting machines (600-1,600 tons) for parts up to 20 lb;
• A high-pressure aluminum diecasting and squeeze casting plant in Minneapolis, with nine machines (400-1,000 tons), producing parts up 20 lb; and,
• A vertical molding foundry for gray and ductile iron castings up to 50 lb.
All three plants have vibratory finishing and various machining, NDT testing, and assembly capabilities.
Key 3 Casting reported total annual sales of approximately $74 million, and has 300 employees – all of whom are expected to remain under the new ownership.
“We definitely see a long-term trend in the marketplace to reduce casting weight by engineering smaller, lighter, iron components or by utilizing lighter materials such as aluminum,” Fetter continued. “The Key 3 acquisition not only provides MTI with a world-class manufacturing footprint for meeting market demand, but provides us with an excellent technical and management team to execute our strategic plan.”
The three plants now joining MTI are one-time Intermet Corp. holdings. That metalcasting group declared bankruptcy in 2009 and was subsequently liquidated.
“MTI is already a supplier to many of Key 3’s customers, so we have a strong relationship to build upon,” according to Fetter. “Our major customers are very supportive of this acquisition, and we look forward to building upon our strong partnership through our expanded capabilities.”