Earlier this year, International Truck and Engine Company introduced its new ‘Big Bore’ 11 and 13 litre engines, specifically referring to a CGI cylinder block. Likewise, on 24 August, General Motors announced a new V8 diesel engine for the North American pick-up truck market, with specific reference to a CGI cylinder block. Can SinterCast comment on these new CGI announcements?

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The information strategies of the OEMs have an important influence on SinterCast’s ability to inform the market of its current development activities and the overall CGI market potential. In this regard, we welcome the early CGI announcements from International and GM.

In the case of International, the CGI ‘Big Bore’ information was released in parallel with two other announcements: the collaboration with MAN in Germany for heavy duty diesel engines; and, the introduction of the new International ProStarTM truck series that will use the Big Bore engines. The 11 and 13 litre Big Bore engines were said to be based on the MAN D20 and D26 CGI cylinder blocks, with modified fuel delivery and emissions systems to satisfy the more stringent US emissions legislations. The commitment to CGI increases the overall CGI market and provides a growth opportunity for SinterCast, especially in consideration of our existing production agreement to supply the MAN D20 CGI cylinder block at the Tupy foundry.

The new General Motors V8 diesel engine, based on a CGI cylinder block, was announced three years ahead of the series production launch. This pro-active announcement by GM is an important indicator of the continually escalating interest in diesel engines in America. The fact that GM specifically referred to CGI also indicates GM’s intention to present itself as a diesel leader in North America and shows the high-tech image the CGI has garnered in the industry. It is also interesting to note that, on 26 July 2006, Cummins announced a new V-diesel engine for the North American pick-up truck market. Although Cummins did not specifically refer to the cylinder block material, the announcement does reinforce the US diesel trend, and therefore, the increased market opportunity for CGI and SinterCast.

Overall, the recent announcements from International and GM demonstrate the need for CGI in advanced diesel engines, the trend toward diesels in North America, and thus the future growth of potential CGI. SinterCast continues to promote and support new CGI programs worldwide. Based on our industry leading technology, know-how, and foundry penetration, we will reap the benefit of the growing CGI market.