On the 31st of March 2022, Linamar Corporation announced their agreement with GF Casting Solutions (GF) to earn 50% interest in their joint venture, GF Linamar LLC which is located near Mills River, North Carolina. GF Casting Solutions is an extended arm of Georg Fischer which was founded in 1802 and is one of the most trusted manufacturing units in Switzerland and also greater Europe.
Two of them had primarily formed a pact in 2015 but following this announcement, Linamar will inherit 100% ownership and operational control of the business. The agreement has been documented and passed, however, there are no pre-closing steps or required regulatory approvals.
GF Linamar LLC (GFL) is a joint venture native to North America which is co-chaired by Linamar Corporation and GF casting Solutions. With their high level of expertise, together they provide lightweight solutions for automotive and commercial vehicles. The metal used by the joint initiative is essentially aluminium or magnesium. They prioritize the precision forging of aluminium gears and other aluminium OEMs for the automobile industry. The company excels in making electronic chips or delicate hardware materials for the automobile industry. They mainly prioritize working with non-ferrous lightweight metals such as aluminium.
"We are very pleased to complete this transaction with GF," said Linda Hasenfratz, Linamar's Executive Chairperson & CEO.
"GF has been an excellent strategic partner; however, we view this ownership change as key to securing our long-term growth plan in Lightweight Structural Castings. Increasing our Structural content per vehicle is a key strategic priority for Linamar in reducing our business concentration in vehicle powertrains and increasing our content in electrified vehicles where light-weighting is so critical. Acquiring full control over this facility will enable us to be more agile and pursue further market opportunities."
"Cast light metal structural components are a strategic priority in our automotive business and the future of electrified mobility," added Jim Jarrell, Linamar's President and COO.
"The book of business that GF Linamar secured demonstrates the strong customer demand for these products. Going forward, our new management structure will enable us to use one operating system to better focus on launching a new business in the near-term and fully achieving our Lightweight Structural Strategy in the long-term."
In the interim, GF will continue to support Linamar and the customer's requirements throughout this transitionary phase.
No financial records were disclosed to the public. The transaction is envisioned to be completed or rather funded by the cash or credit money available under Linamar’s existing facilities. GF Linamar LLC might accept a change of name and will be integrated into Linamar’s Mobility segment.
Linamar is made up of two operating variations, one is the Industrial segment and the other is the Mobility segment, both global leaders in the production of highly engineered products. Their innovative approach, insertion of leading-edge technology and deep manufacturing expertise in every field make them a timid but equipped clan working for a better future. Their Industrial segment is comprised of Skyjack and Macdon. The former manufactures scissor, boom and telehandler lifts for the aerial work platform industry. Macdon manufactures combine draper headers and self-propelled windrowers for the cultivation sector.
On the other hand, the mobility sector is subdivided into three regional groups: North America, Europe and the Asia Pacific. The regional groups are all integrated to increase production while maintaining good quality. They are experts in metal casting, forging, machining and assembly of both the global electrified and traditionally powered vehicular market. The Mobility segment products are focused on both components and systems for new energy powertrains, body and chassis, driveline, engine and transmission systems of these vehicles. Many of these items are usually made of aluminium or other lightweight metal so that the work can be carried out more efficiently and cheap plus the safety of the labourers working on the field is not neglected at all.
The recently formed eLIN Product solutions Group solely focuses on electrification while McLaren Engineering provides design, development and testing services for the Mobility Sector. Linamar is responsible for 26,000 employees in 60 different locations scattered around the world, 11 R&D centres and 25 sales offices in 17 countries ranging from North and South America, Europe and Asia which totalled a sale of US$ 6.5 billion in 2021.
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