The 92,000 sq ft. plant will make crankshaft damper assemblies, knuckle and control arm assemblies, aluminium die cast valve bodies, and powder metal parts. The new factory is located in an area around 50 km from Shanghai, China’s commercial capital, which has seen an influx of new capacity from the international PM community in recent years. Metaldyne has invested $10 million in the new plant and expects sales to exceed $100 million when it reaches full capacity in the next few years. The company will decide on investing in a second plant by the end of the year.

 “We will invest $30 to $50 million in China over the next five years,” said Tim Leuliette, chairman and CEO. “We see great growth opportunity here. In 2006 China represented zero per cent of our revenue. By 2012 it will represent six to seven per cent.” Metaldyne is a leading exponent of successful PM manufacturing and is one of a handful of companies globally that have mastered powder forging of con rods. Last year (Metal Powder Report; October, 2006) Metaldyne was wholly acquired in a $1.2 billion deal by Asahi Tec, a Japanese company which has major interests in manufacturing castings, components and machinery.