Metaldyne expands Korea operation for Asian growth

Leading US powder forging specialist Metaldyne, based in Plymouth, Michigan, plans to expand manufacturing in Pyeongtaek, South Korea. The plant, which produces balance shaft modules for Hyundai, will expand to include powder forged (PF) connecting rod assemblies, and front-end modular assemblies.
"Asia is a key growth area," said Tim Leuliette, Metaldyne chairman, president and CEO. The company also announced that it has retained Goldman, Sachs & Co. to explore a possible divesture of its North American forging business, which represents about 15 per cent of total sales.

The company reports it has built a business model on value-added products such as PF connecting rod assemblies, balance shaft modules, brake corner and transformation modules.

"The divesture of our non-core North American forging business would further strengthen our balance sheet and position Metaldyne for additional core-business expansion," Leuliette said. "As businesses and markets evolve, the forging business is consolidating. While this business is attractive for forging
specialists, it is not core to Metaldyne."

The Metaldyne plant in North Vernon, Indiana, last month began shipping powder forged connecting rods directly to Korea for the 3.3-litre and 3.8-litre Lambda engines produced at Hyundai's Asan plant.

Metaldyne North Vernon has already begun phase-one production of fully machined powder metal connecting rod assemblies for Hyundai's new 3.3-litre Lambda engines produced at Hyundai's new assembly plant in Montgomery, Alabama for the 2005 Sonata.

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