For the last fifty years or so, the aluminum foundry segment’s growth has been characterized mainly by the substitution of other gearbox and engine parts with aluminum castings. Engine blocks and gearboxes were the last main components from the early 1980’s, which led to drastic market growth in the aluminum casting field. Meanwhile, this particular substitution is finished in principle. Besides Europe, all other areas around the world have followed suit. In the sector of engine and transmission, no increase in the aluminum die cast component requirements are expected owing to substitution.
With the global demand to significantly reduce CO2 emissions, the automotive segment is a main CO2 polluter that is under heavy pressure as of now. E-mobility and the reduction of weight are the levers at present with the maximum potential for the reduction of CO2.
Owing to this recent development, people say the aluminum foundry segment will likely experience the significant change of the last hundred years in the aluminum product portfolio. The “bread and butter” components will disappear from the engine and transmission space, and new components in the power train are going to be created. Together with the market of structural and chassis components, there is also the potential to generate development in the aluminum casting field in the subsequent years, despite this dramatic market change.
The Growth Market of Chassis and Structural Components
The increase in these components is changing the portfolio significantly. Products that were made of steel are nowadays made of metals that are light in comparison. To be able to manufacture the bigger chassis and structural components, equipment units with greater clamping forces become necessary now. For this reason, major die casters already offer casting equipment with more than 3,500 tones of the force. The biggest equipment units are at 5,500 tons or slightly above.
These product portfolio changes mean the following for casting manufacturers.
- High investment in “big” die casting equipment units
- High costs for product launches and new process developments
- Results in cash flow drop owing to reducing volumes of the present series components (engine and transmission)
- Strong competition owing to overcapacities in locking force ranges 1,800-2,500 to (earlier high proportion of parts of engine and transmission)
- Several new orders lead to a big demand in the short-term for employees having foundry know-how.
Eventually, cost optimization has to be carried out to meet these requirements. The changes offer opportunities, in addition to risks, and only foundries that have appropriate technology at their disposal, financial strength, knowledgeable employees, and finally, strategy are actually able to seize them.