Two global vehicle OEMs have placed an order with Rheinmetall for several hundred thousand engines blocks, estimated to be worth “in the mid double-digit million-euro range”.
The specific order is for four-cylinder engines blocked produced using a high-pressure die-casting process. Rheinmetall will begin to fulfill the order in the autumn, with the cast parts manufactured at its plant in Neckarsulm, Germany, over the next four years. The final processing and assembly of the blocks will be carried out by the OEMs.
KS Huayu AluTech – a joint venture co-owned by Rheinmetall and Huayu Automotive Systems – will carry out the die-casting process.
Rheinmetall’s castings business unit division, Materials and Trade, consists of two large companies – KS Huayu AluTech in Europe and Hasco KSPG Nonferrous Components (KPSNC) in China. Rheinmetall and Hasco each hold a 50% stake in the JV.