For years its been a general apprehension amongst people with insight in the automotive industry, that heavy duty truck makers would be the first to launch CGI engine blocks and heads. Not mainly for environmental reasons, but for the benefit of increased power and mileage and lower fuel consumption. However, it now seems the car industry has taken the lead and are planning to launch new engines in CGI in 2003. Does SinterCast have any comments on that? Are there any reasons to believe that the heavy duty truck industry no longer represent a possible market for CGI and SinterCast?


Shareholder, name withheld

The heavy duty truck market is an important part of the CGI market potential, and SinterCast is actively involved in development programs. In comparison to the passenger car market, where CGI is focused on the cylinder block, the truck market allows potential for CGI application to blocks, heads and liners. Even if the truck volumes are generally lower than the car volumes, a big 15 litre truck block weighs about six times more than a V6 car block (350 kg vs 60 kg). Therefore, 25,000 truck blocks provides the equivalent of 150,000 passenger car blocks.

Although we have not yet made any public announcements, the CGI truck market is active and will be an important part of SinterCast’s production activities. As mentioned during the Managing Director’s Report at the 24 May 2002 AGM, we expect the truck production to begin in parallel with the passenger car production.