Windfall and Forjisinter form joint venture to tackle South American automotive expansion

Windfall and Forjisinter form joint venture to tackle South American automotive expansion THE opportunities of South America’s burgeoning automotive industry have prompted the formation of a joint venture between powder metallurgy (PM) parts makers Windfall Products lnc and Forjisinter Industrio E Commercio Ltda. The joint venture will combine the resources and expertise of US-based Windfall Products with the location, workforce and market access that have been established by Forjisinter Ltda of Brazil. Windfall Products, based in St Marys, Pennsylvania, is North America’s fourth largest PM producer with sales of $60 million in 1994. It is an automotive PM specialist and the largest producer of soft magnetic materials PM products worldwide. Forjisinter Ltda, meanwhile, has been producing sintered metal products in Brazil for three years, with the owners and managers of the company having been involved in the sintered metals manufacturing arena for more than 25 years. Forjisinter’s business is concentrated in non-ferrous applications, such as bronze bearings and filters, with the home appliance industry its biggest customer. The company has developed considerable in-house expertise, including the ability to design and construct all its own equipment. Windfall Products’ director of international business development, Bernard E. Speedy, says the joint venture will concentrate on automotive business. He says the joint venture will service all of South America, but will concentrate on the major markets of Brazil, Argentina and Chile. Although still operating under the letter of intent, the partners have already held extensive talks with potential customers and may begin production within six months. It is expected that the joint venture will target existing

customers of Windfall’s that have established a manufacturing presence in South America - these companies currently include General Motors, Bosch and AlliedSignal. Speedy says that decisions on plant expansion and equipment resources will not be made until these talks with customers have been finalized.

Both companies are confident that the joint venture will better serve South American buyers of sintered metal components and will enhance the future growth of their respective companies. Speedy says Windfall expects the joint venture to achieve sales of $7-10 million within five years of start-up.

A profile of Windfall Products operations at its St Marys headquarters will be presented in October’s Metal Powder Report as part of its focus on US part makers.

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