How (and when) do new CGI orders get announced?


Shareholder, name withheld

The process begins with the car and truck companies, who are the end-users of the CGI castings. They must first decide to use CGI and award the production order to a foundry. The car and truck companies are usually reluctant to make any public statements about their choices of materials or foundries. They try to keep the material selections confidential for as long as possible to gain a competitive advantage and, as they typically source castings from several foundries, they have strict policies that prevent them from favouring any one supplier.

When a new production order is awarded to a foundry, the foundry can request permission from the car and truck manufacturer to publicly announce the order. The foundry then drafts a Press Release to be reviewed and approved by the manufacturer. Although there may be ’negotiations’ about the contents of the Press Release, the car or truck manufacturers have the final decision. As the Information Departments of the car and truck companies want to control their own information, they usually restrict suppliers from disclosing precise details about timing and volumes.

Over the past years, SinterCast has established good relationships with senior executives in the automotive and foundry industries. These relationships have been crucial in our efforts to obtain approval of our public announcements. While we may all prefer to have more frequent and more detailed announcements, our respect for the requirements of the car and truck companies reinforces our standing as a reliable and trustworthy business partner. This will ultimately lead to more business.

Finally, our strategy is that all announcements related to new installations or new production commitments shall be made jointly with our foundry partner. Our announcements always have the consent of the automotive end-user and the support of our foundry market. To the market, we hope that this conveys added strength and credibility to the announcement.