Tupy announces agreement to purchase two foundries in Mexico

The plants are located in the cities of Saltillo and Ramos Arizpe, respectively, and produce cast iron blocks and cylinder heads used in to manufacture automotive engines for passenger and commercial vehicles, agricultural and construction machinery, stationary engines and others.

The deal involves approximately US$ 439 million. To become effective, it will require approval by pertinent regulatory agencies.

Regarding the transaction, Alfonso Gonzalez Migoya, president and CEO of GIS, said: “We found in Tupy a buyer with recognized expertise, which will undoubtedly expand the business and promote the development of both units.”
Once the acquisitions are accomplished, Tupy – which is already a significant supplier to the global automotive market – will become the largest cast iron engine block and cylinder head manufacturer in the world.

“Internationalization will allow us to diversify the company’s business and strengthen our global presence,” said Luiz Tarquinio Sardinha Ferro, Tupy’s CEO. He further clarifies internationalization does not mean the company will cease to invest in the country. “Brazil remains our primary focus,” he adds. “The size of our investment in casting, milling and environmental advances in the last three years in Joinville and Maua plants adds up to R$ 500 million. This should cast no doubt on our commitment to Brazil.”

The new operations in Mexico will allow Tupy to operate closer to North American based automotive clients and increase the representation of manufacturing components for agricultural, construction and mining machinery engines in its business portfolio. “We are greatly interested in expanding our service to these segments and thus diversifying our portfolio,” says the CEO, Luiz Tarquínio.