Divestment of Herzogenburg’s Iron Foundry GF Casting Solutions withdraws from Automotive Iron Casting Business
As part of the strategic focusing of its portfolio, GF Casting Solutions, a division of GF, is divesting its iron foundry in Herzogenburg (Austria) to MRB FerCon GmbH. The transaction will have a negative one-off effect of CHF 10 million on the operating result in the second half of 2019.
As part of its Strategy 2020, GF Casting Solutions has taken promising steps in recent months. The attractive aerospace and energy segments have been expanded systematically. In line with the trend toward lighter vehicles, the division has also strengthened its position in aluminum and magnesium light metal components. At the same time, the divestment of the Singen and Mettmann (Germany) sites at the end of 2018 initiated the withdrawal from the automotive iron casting business in Europe.
Divestment has no Influence on Light Metal Foundry
As announced in the Mid-Year Report 2019, GF Casting Solutions is now divesting its iron foundry in Herzogenburg (Austria). The foundry is being acquired by MRB FerCon GmbH, which was established by the two former GF executives Markus Rosenthal and Ralf Bachus. With around 250 employees, the plant generates sales of approximately CHF 75 million. The light metal foundry at the same location is not affected by the divestment.
The transaction will take place retroactively as of 30 September 2019, and will have a negative one-off effect on GF’s operating result (EBIT) of CHF 10 million. GF is granting a loan of around CHF 12 million to the buyer to finance the purchase.
Andreas Müller, CEO of GF, says: “With this divestment, we are consistently implementing our Strategy 2020. We are pleased to divest the site with all 250 employees to an experienced and proven management team with comprehensive foundry and sector knowledge. Also with this transaction, the focus is on continuity for customers and employees.”
With lean structures, the owners of MRB FerCon GmbH are convinced to respond swiftly and flexibly to the needs of the customers. Markus Rosenthal, owner of MRB FerCon, says: “Together with our employees, we look forward to further developing the Herzogenburg site.”
GF Casting Solutions is one of the world’s leading solution providers for light weight components in passenger cars, trucks, the aviation and energy segments which reduce CO2 emissions. The division develops and produces highly complex metal components at locations in Switzerland, Germany, Austria, Romania, China and the USA.