Linamar Corp. has acquired GF Casting Solutions’ 50% stake in GF Linamar LLC, the joint-venture, high-pressure diecasting and machining operation they formed in 2015. The Mills River, NC, plant with approximately 450 employees will be rebranded, Linamar stated.
No value for the transaction (which closed on April 1) was provided by Linamar. The former partners’ initial investment in the venture was reportedly $217 million, and GF Linamar generated sales of approximately $120 million in 2021.
Linamar CEO Linda Hasenfratz explained that the ownership change is part of the group’s long-term growth plan in lightweight structural castings. “Acquiring full control over this facility will enable us to be more agile and pursue further market opportunities," she said.
GF Linamar LLC started producing aluminum and magnesium structural and powertrain castings in 2017, supplying automotive and commercial vehicle customers.
Earlier Georg Fischer Ltd. announced its intention to sell its share of the operation to Linamar, noting the plant’s performance had been “impacted by ramp-up challenges stemming from pandemic-related labor shortages.”
GF added: “Since 2021, disruptions in call-off patterns due to supply chain issues at customers did not help to improve the situation (for GF Linamar).”
The Swiss group also noted that its divestment does not change GF Casting Solutions' long-term strategy to serve the North American market.
"Cast light metal structural components are a strategic priority in our automotive business and the future of electrified mobility," stated Jim Jarrell, Linamar president and COO. "The book of business that GF Linamar secured demonstrates the strong customer demand for these products.
“Going forward, our new management structure will enable us to use one operational system to better focus on launching new business in the near-term and fully achieving our Lightweight Structural Strategy in the long-term," according to Jarrell.