Hitachi Metals Automotive Components to Be Division of Waupaca Foundry
March 3, 2016
Waupaca Foundry Inc., Waupaca, Wisconsin, announced it will merge with Hitachi Metals Automotive Components USA LLC (HMAC). The merger is part of a larger reorganization within Hitachi Metals Foundry America designed to position the integrated organization for growth and meet customer demand.
According to a news release, Waupaca Foundry will assume the assets and liabilities of HMAC. Both companies are currently subsidiaries of Hitachi Metals Foundry America (HMFA). After the merger, HMAC will become a division of Waupaca Foundry, but will continue to operate under the HMAC name.
Subject to customary conditions, the merger is expected to be complete on April 1.
Daily operations at Waupaca will not be impacted, and the merger is part of the firms’ strategic alignment.
“The merger with HMAC allows us to further integrate castings and value added services for our customers in diverse markets,” said Gary Gigante, CEO, Waupaca Foundry. “We are committed to being the world’s leading casting solutions provider, and this is a critical step in achieving that goal.”
In 2014, Hitachi Metals Ltd. purchased Waupaca Foundry from KPS Capital Partners LP, a New York-based private equity firm.
Waupaca Foundry produces gray iron, ductile iron and austempered ductile iron castings and employs more than 3,900 people at six manufacturing facilities, including three in Waupaca and others in Marinette, Wisconsin; Tell City, Indiana; and Etowah, Tennessee.
HMAC produces cast, machined and assembled ductile iron suspension and exhaust components for global automotive OEMs. It currently operates a machine and assembly plant in Effingham, Illinois, as well as a ductile iron casting facility in Lawrenceville, Pennsylvania.
The company employs 485 people across all locations.
“This reorganization further unites Hitachi Metals’ product design engineering expertise and materials development with Waupaca Foundry’s manufacturing excellence,” said Eddie Nakano, president and CEO, HMFA. “The merger will unite an experienced leadership team that is focused on delivering the most innovative products and technology to a growing base of global customers.”
HMAC CEO Mike Nikolai said the merger is a response to increased customer demand.
“Centralizing machine and assembly operations allows us to be more flexible in meeting the evolving demands of our customers,” Nikolai said. “We’ve already increased overall operational capacity and are positioning our organizations for long-term, sustainable growth.”