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CASTING STRATEGY

CASTING STRATEGY. Aluminum Sand Casting. Issue: Bernsten Foundy (Madison, WI) was not able to meet increased EGS Atizapan Aluminum Sand Cast requirements. 24 p/n aprox. 465,000 lbs/year for ATZ running with B&P Machines Task:

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CASTING STRATEGY

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  1. CASTING STRATEGY

  2. Aluminum Sand Casting • Issue: • Bernsten Foundy (Madison, WI) was not able to meet increased EGS Atizapan Aluminum Sand Cast requirements. • 24 p/n aprox. 465,000 lbs/year for ATZ running with B&P Machines • Task: • Develop alternate supply sources to meet production requirements. • Status / Actions: • Moved 11 high volume parts / molds. • 8 p/n (36% annual volume) to Proesa (Mexican vendor with manual process) • 1 p/n (3% annual volume) to Mezkan (USA permanent mold supplier) • 2 p/n (28% annaul volume to Birch Hill (EGS Foundry running B&P machines) • Continue looking for alternatives to reduce prices with domestic vendors (new tooling, automatic processes) • Monitoring Bernsten performance and evaluating alternate sources to move additional molds as required to assure parts availability.

  3. Aluminum Die Casting in Atizapan • Issues: • Currently working with 2 vendors • Die Casting Mexicana: 40 dies; 129 p/n (mainly Powertite); aprox $700 KUsd (w/o aluminum) • Alpe; 26 dies; 69 p/n (low volume for ATZ & CO); aprox. $300 KUsd • Strong dependence on Die Casting Mexicana • Tooling in poor conditions • Concern about tooling capacity for our new requirements • Tasks: • Develop alternate reliable suppliers for a low volume-high mix business • Develop a major repair plan to overhaul powertite tooling • Status / Actions: • Quoting with Pace (Saltillo) new tools and parts for our critical parts (high runners) • Tooling capacity analysis done • Major repairs plan in process ($800 KUsd in 2 years) • Analyze alternative to buy our own machines

  4. Iron Castings in Atizapan • Issues: • South Milwaukee (EGS Foundry) is the main supplier of castings for Atizapan; 2,500 M. Tons/year • 85% Malleable iron • 12% Ductile iron • 3% Other castings • Delivery & quality problems. EGS corporate requirement is to release 30% of the total annual volume of SM • Tasks: • Develop suppliers and alternatives for ductile & malleable iron • Status / Actions: • Ductile (110 p/n; 285 M Tons/year): • Quoting with Memper (Mexico City) new tools and parts • 1st phase: 13 p/n (50% annual volume) • Malleable (balance) • Analyzing different alternatives: NINSA, MEMPER, buying Annealing furnace

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