Metal Technologies and Quimmco Agree to Form Joint Venture
January 4, 2016
Metal Technologies (MTI), an Auburn, Ind.-based metalcaster, and Quimmco, a Mexican industrial conglomerate, have entered into a Memorandum of Understanding to jointly own and operate Quimmco’s Blackhawk de México, S.A. de C.V. (Blackhawk), an iron foundry located in Santa Catarina, Nuevo Leon, Mexico, serving the NAFTA market.
In making the announcement, MTI Chairman and CEO Rick James said that the joint venture “will take advantage of MTI and Quimmco’ s strengths, through combining Blackhawk and MTI’s iron foundry technology, expertise and best industrial practices, as well as customer portfolio and supplier base.
"We are pleased to be able to partner with Quimmco which is a highly respected Mexican business with a widespread range of automotive, agriculture, heavy duty truck and industrial customers throughout the NAFTA region,” James continued. “Many of MTI’s current customers have recognized the growing importance of the Mexican automotive industry in North America and have urged MTI to establish manufacturing capabilities in Mexico."
Quimmco’s Director General Jesus Barrera echoed these benefits to the new partnership. “The goal of Blackhawk foundry is to grow with our customers to serve the quickly expanding Mexican automotive industry and general economy,” Barrera said. He continued that “[t]he synergies of Quimmco’s experience and Metal Technologies wide reach into major automotive customers will help assure Blackhawk’s continued growth. We are very pleased having MTI as our partner in Blackhawk.”
MTI has agreed to acquire 49% of the ownership of Blackhawk. MTI and Quimmco have agreed to make additional investments to expand Blackhawk’s manufacturing capabilities and diversify its customers and markets. The transaction is expected to close at the end of the first quarter of 2016.
Metal Technologies is headquartered in Auburn, Ind., and has seven manufacturing facilities in Indiana, Michigan, Minnesota and Tennessee. It produces gray and ductile iron castings, aluminum castings, tooling and machined parts for the automotive, truck, small gasoline engine, appliance, air conditioning, medical device industry and other markets. It employs approximately 1,300 people and has annual sales in excess of $450 million. The company was founded in 1997 by Rick James and remains privately held.
Blackhawk de Mexico, S.A. de C.V. is a wholly owned subsidiary of Quimmco devoted to producing gray and ductile iron castings for clients in Mexico and the United States.
Quimmco is headquartered in Monterrey, Mexico. It is the holding entity of a conglomerate of companies located in Mexico, devoted to industrial and commercial activities, including the design, manufacture, and sale of automotive components, agriculture tractors, construction equipment and chemicals for the domestic and export markets. It employs approximately 5,400 people and has annual sales in excess of $1.2 billion. The company was founded in 1989 by Rodolfo Barrera and is privately held.