Chassix, a global automotive supplier of aluminum and iron cast and machined chassis, powertrain and sub-frame automotive components, announces it is acquiring Benteler Automotive Farsund’s lightweight aluminum low-pressure automotive casting business.
The operations consist of a highly automated aluminum foundry in Farsund, Norway, designing and producing lightweight aluminum structural castings, Southfield, MI-based Chassix says in a news release. The Norwegian company’s casting business produces safety-critical components, such as subframes, swing arms, steering knuckles and rear hubs for luxury-brand automotive customers.
“The acquisition of Benteler Automotive Farsund’s casting business accelerates our vertical integration in Europe, provides customer and product diversification and further enhances our technical capabilities in our core business,” Chassix President and CEO Doug DelGrosso says.
“The Farsund business is strategically aligned with the Chassix growth plan and provides a strong team to further develop our core competencies of casting and machining chassis, powertrain and sub-frame solutions for global customers.”
Benteler Automotive Farsund’s casting business has about 275 employees. The company will continue to develop lightweight solutions by leveraging its in-house competence of steel and aluminum processing based on 141 years of experience. When needed, Benteler will source aluminum casting products through external partners.
“The divestment of Benteler Automotive Farsund will allow us to further invest into our core business and leverage upcoming opportunities,” Benteler Automotive CEO Laurent Favre says. “We will pursue our strategic plan and will continue to develop electric mobility and provide full-system solutions which automotive customers increasingly outsource. At the same time, we will systematically leverage future trends such as digitalization, cooperation with startups and invest into growing markets such as China.”
Chassix had 2016 sales of $1.2 billion. It operates 23 manufacturing facilities and four technical centers in seven countries, employing more than 4,000 people.