Indiana-based Metal Technologies Inc. is forming a joint venture with a Mexican industrial group to own and operate Blackhawk de México S.A. de C.V., a gray and ductile iron foundry in Santa Catarina, near Monterrey, Mexico. Its products are supplied mainly to OEM and Tier One automotive, truck, and off-road vehicles. Quimmco, the industrial group that currently owns Blackhawk and has a number of operations producing components and systems for those same markets, will sell a 49% stake in the foundry to MTI.
The value of MTI’s investment has not been indicated since the new venture was announced early in January. The transaction is expected to close at the end of Q1 2016.
Together, MTI and Quimmco agreed to make “additional investments to expand Blackhawk’s manufacturing capabilities and diversify its customers and markets.” Those details likewise were not provided.
Blackhawk de México is a green sand and no-bake foundry, with shell and cold-box coremaking, flaskless and matchplate molding, induction melting and holding, and an automated pouring system. The foundry also has in-house metallurgy and product quality testing labs.
MTI chairman and CEO Rick James said that the joint venture would “take advantage of MTI and Quimmco’s strengths, through combining Blackhawk and MTI’s iron foundry technology, expertise, and best industrial practices, as well as customer portfolio and supplier base.”
Metal Technologies Inc. has seven plants in Indiana, Michigan, Minnesota and Tennessee, producing gray iron, ductile iron, and aluminum castings, for automotive, truck, small gasoline engine, appliance, air conditioning, medical device industry and other markets.
James established MTI nearly 20 years ago. He noted that many of his company’s customers recognize the increasing significance of the Mexican automotive industry, and encouraged MTI to establish manufacturing capabilities there.
“The goal of Blackhawk foundry is to grow with our customers to serve the quickly expanding Mexican automotive industry and general economy,” according to Quimmco’s director general Jesus Barrera. He said the synergy of Quimmco’s experience and MTI’s major automotive customers help to ensure Blackhawk’s future growth.