China remains the dominant market for aluminium castings, followed by other key players such as the United States, India, Japan, and Germany. Global demand for aluminium castings is steadily climbing, with consumption projected to grow from 23.18 million tonnes in 2024 to 23.96 million tonnes in 2025, an increase of around 3.36 per cent. This upward trend is fuelled by rising demand in key industries like automotive, aerospace, and construction, where aluminium castings are valued for their lightweight strength, durability, and sustainability.
Reflecting this momentum, Chinese engine components manufacturer Tianrun Industrial Technology has announced its strategic move into lightweight aluminium products with the acquisition of Altechno Auto Parts a Korean-owned auto parts maker based in Shandong.
Valued at RMB 135 million (USD18.8 million), the acquisition reflects Tianrun’s strategic intent to tap into the growing demand for aluminium components in passenger vehicles a segment increasingly focused on lightweighting to improve fuel efficiency and meet stricter emission standards. Currently focused on cast iron and forged steel parts, Tianrun aims to diversify its portfolio through the acquisition.
The transaction, expected to be completed by 2027, not only gives Tianrun access to Altechno’s technical know-how but also reinforces China’s larger ambitions to dominate the lightweight automotive materials market.
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However, the acquisition also comes at a time when Altechno Auto Parts has been grappling with financial distress, largely attributed to dwindling orders from key South Korean clients in China. In Q1 alone, the company reported a net loss of RMB 4 million (USD 550,000) on revenue of RMB 100 million (USD14 million), with a concerning accounts receivable of RMB 265 million. Yet for Tianrun, this might represent an opportunistic buy one that combines distressed asset pricing with long-term strategic value.
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The announcement had a mixed effect on the market, with Tianrun’s shares [SHE: 002283] initially climbing by 3.8 per cent before closing 0.5 per cent lower at RMB 6.37 (USD0.90), indicating cautious optimism from investors.
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