Shiloh Industries Inc., a multi-discipline automotive parts manufacturer, has completed the purchase of Contech Castings from Revstone Industries LLC, which is in bankruptcy proceedings. Details of the sale were not released, but reports indicate that Revstone to executed the transaction outside of a federal bankruptcy court’s oversight by transferring Contech to one of its non-bankrupt holdings.
Earlier reports projected the sale price at $54.4 million.
Contech Castings consists of four metalcasting plants, in Alma, MI, Clarkson, TN, and Auburn and Pierceton, IN. Operations were scaled back at the two Indiana plants in May, eliminating jobs for more than 200 workers.
Revstone Industries is a holding company that along with several subsidiaries filed for creditor protection in December 2012.
Shiloh emphasized that Contech Castings’ high-pressure aluminum diecastings would add “significant capacity and depth” to its “high-pressure, high-vacuum casting capabilities.” Specifically, Shiloh listed P2000™ squeeze casting, ThinTech® vacuum casting, and high-pressure conventional diecasting capabilities as important additions to its automotive product line.
"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," stated Shiloh president and CEO Ramzi Hermiz. "As a leader in this segment of the industry, it made sense for us to strengthen our technology and add capacity with the addition of Contech to further enhance Shiloh's position."
Shiloh’s current products are body-in-white structures, seating systems, acoustic products, emissions system products, and specialty assemblies. It has one metalcasting operation— Shiloh Die Cast Midwest LLC in Pleasant Prairie, WI — which produces high-pressure diecastings for axle housings, gear cases, valve covers, and shock towers. Other plants conduct precision blanking, laser and mash-seam welding, and many other design and assembly processes.
"From stamping to laser welding and now expansion of advanced aluminum casting, Shiloh is committed to offering technologies that meet our customers' needs," Hermiz stated. "This acquisition creates a unique, deep and talented team of experts that offer new solutions for lightweighting challenges."