News

Two North American giants come together.

Issued at 2010-05-24



Citation Corporation and Grede LLC have created Grede Holdings LLC, which will be the parent company of New Castle Foundry in east central Indiana, USA. “The combination of Citation and Grede creates, what we believe is, the most diversified foundry company in North America with one of the strongest balance sheets in the industry,” said Doug Grimm, chairman, president and CEO of the new company and former CEO of Citation. The new Grede will be headquartered in Michigan. The transactions were helped with additional equity investment from Wayzata and Citation’s largest shareholder, GSC Group.

Grimm continued: “We expect revenue to reach $600 million in 2010 through our combined business in the automotive, industrial and heavy truck markets. The significant equity investment from Wayzata and GSC has reduced total funded debt of the two companies by 80%, or $110 million. This gives us a best-in-class financial profile, allows us to invest appropriately and weather economic cyclicality moving forward.”

The new Grede has 2,700 employees, 14 foundries and two machining facilities with nearly 600,000 tons of iron casting capacity. The company will have an expanded manufacturing portfolio with capability to produce and machine ductile, grey, high silicon molybdenum and lost foam iron cast component parts and assemblies ranging from 0.45kg to 909 kg.


Source: Foundry Trade Journal International



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