Linamar acquires partner’s interest in casting facility joint venture
Linamar will assume 100 per cent ownership and operational control of the GF Linamar LLC business.
Automotive parts maker Linamar Corp. has reached an agreement with GF Casting Solutions (GF) to acquire its 50 per cent interest in their joint venture, GF Linamar LLC (GFL), located in Mills River, N.C.
GF Casting is a division of Georg Fischer AG. The two parties originally formed the joint venture in 2015. Following this announcement, Linamar will assume 100 per cent ownership and operational control of the business.
The GFL joint venture manufactures structural and powertrain components in aluminum and magnesium.
“[GF Casting] has been an excellent strategic partner; however, we view this ownership change as key to securing our long-term growth plan in lightweight structural castings,” Linamar’s executive chair and CEO Linda Hasenfratz said in a March 31 news release. “Increasing our structural content per vehicle is a key strategic priority for Linamar in reducing our business concentration in vehicle powertrains and increasing our content in electrified vehicles where lightweighting is so critical. Acquiring full control over this facility will enable us to be more agile and pursue further market opportunities.”
The statement also said that GFL will undergo a rebranding name change and become fully integrated into Linamar’s mobility segment.
The financial details of the transaction have not been disclosed.
Linamar is headquartered in Guelph, Ontario.