Wescast Industries Inc., North America's largest exhaust manifold maker, has won several contracts in Europe to supply engine parts for PSA/Peugeot-Citroen SA, Volkswagen AG and Ford of Europe.
Wescast will supply cast manifolds for several engines as part of its deal with Peugeot this year, according to a company statement. Terms were not disclosed.
The Brantford, Ontario, company also will supply machined and assembled manifolds to VW's Salzgitter, Germany, engine plant for 2.5-liter five-cylinder diesel engines.
Ford will be supplied with cast and machined manifolds for its four-cylinder Lynx 1.8-liter diesel engine program and the 3.6-liter Lion V-8.
In a statement, Wescast CEO Ed Frackowiak said the contracts are part of the company's effort to diversify its customer base and build on relationships with European customers.
In September, Wescast reported that the planned sale of its foundry in Brantford had fallen through. It now is expected to close in the first half of 2006. The company also is closing its plant in Cordele, Ga., which makes brake calipers, brake anchors, brackets and steering knuckles to focus on the exhaust manifold business.
The North American automotive casting industry, which melts scrap steel to make a variety of metal parts, has suffered a shakeout because of declining Big 3 production, the automakers' intense price-cutting demands and the soaring price of scrap steel.
The company operates eight production facilities in North America and Europe. One U.S. plant is a joint venture with United Machining Inc.
Wescast posted net income of $22.3 million on sales of $340.8 million last year. Its primary customers are General Motors, Ford Motor Co. and the Chrysler group.
Its leading competitors include ArvinMeritor Inc. and Tenneco Inc.
You may e-mail Robert Sherefkin at [email protected]