Germany’s Hettich Group has sold its magnesium die-casting plant Castwerk in Frankenburg. Castwerk mainly produces magnesium alloy lightweight components for the automotive and electric vehicle industries.
The private investment company Sierra Zulu GmbH from Wiesbaden, Germany and Niemeyer Invest GmbH from Düsseldorf will take over all assets and business operations of Castwerk on July 1, 2022.
Sasha Gross, managing director of Kirchlengern-based Hettich Group, confirmed this to German media HNA on Monday. According to a statement from Hettich headquarters at the time, Gross also acted as Castwerk’s agent from February 2021, following the decision by former Castwerk general manager Michel Slang to “take on a new professional challenge outside the Hettich Group”. General manager.
The two parties have signed an acquisition agreement. Neither party has made any statement about the purchase price. All 212 Castwerk employees have the option to remain with the company.
Castwerk produces lightweight magnesium alloy components for the automotive, e-bike and scooter industries. Parent company Hettich has invested around EUR 12 million in the expansion of the castwerk foundry in Frankenburg since July 2019.
Castwerk has grown strongly in recent years. The magnesium casting business segment of the automotive industry and the urban mobility segment (e-bikes and scooters) are growing rapidly because components made of magnesium are significantly lighter than products made of aluminum.
“However, we have to realize that neither technology nor organizational structure can adequately handle this growth,” Sasha-Gross said. That’s why Hettich Group is looking for a strategic investor for Castwerk. Gross is convinced that by choosing Sierra Zulu and Niemeyer Investments, “the right specialists have been found to transform Castwerk foundry and automotive suppliers”. The team includes experts from the fields of investment, transaction management, financing and operations management. Gross thanked all Castwerk employees “who have been with us through the entire transformation process so far” and to all customers and suppliers who continue to remain loyal to Castwerk.
Alexander Zucker, Managing Director of Sierra Zulu LLC, said: “Castwerk, with its highly qualified staff and modern machine base, provides all the prerequisites for a sustainable path to support and accelerate growth. We wanted to create a project that reflects our commitment to quality , employee qualifications and efficiency requirements for businesses”.
Benedict Niemeyer, Managing Director of Niemeyer Investments Ltd, said: “We look forward to contributing our strength and experience as entrepreneurs, together with the creative energy of Castwerk’s employees, to create a first-class, first-class, future-proof magnesium casting technology. An industry-recognized partner.”