Tupy has announced the start of production of cylinder blocks and heads at its new foundry line in Joinville, Brazil.  Can SinterCast confirm if it is involved in the new foundry.

Tupy initially announced the construction of a new cylinder block and head facility in Joinville, Brazil in early 2008, and publicly stated that the new line would be used for CGI production.  However, the subsequent planning was influenced by several factors.  The first of these was an extended postponement in construction due to the economic downturn in 2008 and 2009.  The downturn also affected the production planning for some high volume CGI engines that both Tupy and MAG referred to as guest speakers at the SinterCast AGM of 2007, resulting in a change of the expected grey iron / CGI product mix in the Tupy order book.  Finally, during the construction of the facility in Brazil, Tupy entered into negotiations to acquire the Cifunsa Diesel and Technocast foundries in Mexico.  Tupy’s acquisition of these cylinder block and head foundries was concluded on 18 April 2012, increasing its total capacity and establishing a production base in the NAFTA region.  In consideration of these changes, Tupy decided to start the production at its new Joinville facility in grey iron, while allocating its CGI production demand to three other lines, two of which are in Brazil and one in Mexico.  The decision by Tupy affected SinterCast’s installation planning, but it does not in any way affect the series production volume or revenue.  Tupy continues to plan further expansions of the new facility in Joinville and, building on our close rapport with Tupy, we continue to work together with them to support their current and future CGI production requirements.