Renowned Mexican auto components manufacturer Nemak has acquired the automotive unit of GF Casting Solutions, a subsidiary of Swiss Industrial Group George Fischer. The Swiss industrial group is known for producing lightweight aluminium and magnesium components using metal casting technologies.
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Image for representational purposes only (Source: https://mexiconewsdaily.com/
The acquisition value is USD 336 million, but the deal is yet to clear regulatory clearance. Nemak has already made an initial payment of USD 160 million, financed through long-term credit lines, while the balance will be covered over the next five years through assumed liabilities and deferred payments.
The acquisition of George Fischer is likely to bring Nemak an annual revenue of USD 707 million and USD 91 million in EBITDA, as per the 2024 projections.
Nemak’s global footprint expansion
The deal will transfer to Nemak a research and development centre in Schaffhausen, Switzerland, along with nine production plants in Austria, China, Romania, Germany, and the United States. Nearly 2,500 employees will become part of Nemak’s global workforce.
Alongside its expanded global footprint, Nemak will also gain access to the specialised product portfolio of GF Casting Solutions, which is focused on highly complex aluminium and magnesium parts. Roughly 80 per cent of GF’s products are dedicated to electromobility, chassis, and structural applications, and the remaining 20 per cent to other components.
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Positioning for the future of mobility
The acquisition is a business imperative for Nemak, as it gives them unhindered access to a diverse customer base globally. It includes European premium automakers such as Audi, BMW, Mercedes-Benz, Porsche, Jaguar Land Rover, Stellantis, Volkswagen, and Volvo, as well as leading Chinese EV manufacturers including BYD, Geely, Nio, Li Auto, Xpeng, Zeekr, Denza, and Hongqi.
Nemak authorities have already stated that this deal is a milestone in its long-term strategy to evolve “beyond the internal combustion powertrain” while expanding its global presence. The acquisition will not only help the company to expand its own customer portfolio but also help in deepening its technological expertise and strengthening its position in the transition to sustainable mobility.
“GF Casting Solutions’ automotive business will bring advanced expertise in designing and producing highly complex aluminium and magnesium components – critical for lightweight vehicle design,” said Álvaro Fernández, Chairman of Nemak’s Board of Directors. He has added that Nemak’s move is enough to boost the company’s high-pressure die casting (HPDC) capabilities, and it will definitely expand its commercial reach, particularly among premium OEMs in Europe and China.
CEO Armando Tamez is quite optimistic on the part that the acquisition will enhance Nemak’s offering of high-growth, non-ICE components, especially for electric vehicles, chassis, and structural systems. He has emphasised the fact that GF Group’s “reputation for excellence and reliability” complements Nemak’s business values and mission, which further reinforces its commitment to innovation and long-term value creation.
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