New orders and new product opportunities
* Annualised series production increases by 15%, to 750,000 Engine
Equivalents, in September
* Da Shiang Precision foundry, China, prepares for increased series
production
* Hydrogen Engine Center, USA, launches new SinterCast-CGI hydrogen
fuelled engine
Building on the continued ramp-up of series production in the
commercial vehicle sector, SinterCast posted its highest ever monthly
production during September 2008, with an annualised production rate
of approximately 750,000 Engine Equivalents (37,500 tonnes/year).
September's production represents a 15% increase compared to the
stable production rate of approximately 650,000 Engine Equivalents
during the first eight months of 2008, and a 65% increase compared to
September 2007. The current series production programmes will
continue to ramp-up, and are expected to reach mature volumes of more
than one million Engine Equivalents per year. New production
programmes will also come on-stream to provide a continuous increase
in the series production volume.
In preparation for increased series production, the Da Shiang
Precision foundry in Tianjin, China, has ordered a complete set of
back-up hardware modules for its existing System 2000. The back-up
modules will provide expansion capability as Da Shiang increases its
SinterCast-CGI production beyond the current turbocharger housing
component to include additional high volume exhaust components. The
System 2000 modules, with a total order value of approximately SEK
1.5 million, were shipped from SinterCast's Technical Centre in
Sweden during early-October.
In the United States, the Hydrogen Engine Center (HEC) has launched a
new 9.3 litre V8 hydrogen engine. The spark ignited engine is the
largest hydrogen engine available and is based on SinterCast-CGI
cylinder blocks and heads produced at the Motor Castings foundry in
Milwaukee. The HEC zero-emissions hydrogen engine has been developed
for continuous operation in electrical power generation systems and
for buses. Under these demanding operating conditions, the use of
Compacted Graphite Iron increases the life of the engine by more than
five times. HEC also intends to develop a 10.2 litre version of the
engine, thus further increasing the market opportunity for SinterCast
in this new and important field."Despite the economic conditions facing the global automotive
industry, we are confident that our production volumes will continue
to increase" said Dr Steve Dawson, President & CEO of SinterCast. "We
have many new series production programmes ready to come on-stream
and several new foundry installations are under discussion. While the
current shift toward smaller vehicles will undoubtedly affect volumes
in the luxury and SUV markets, the growth provided by our new
activities will outweigh any reduction in the current programmes,
ensuring a continuous increase in our production volumes and our
recurring running revenues."
Stockholm, 13 October 2008
Dr. Steve Dawson
President & CEO
SinterCast AB (publ)
Tel: +46 8 660 7750
e-mail: steve.dawson@sintercast.com
website: www.sintercast.com
SinterCast is the world's leading supplier of process control
technology for the reliable high volume production of Compacted
Graphite Iron (CGI). SinterCast produces a variety of CGI components
ranging from 1.6 kg to 17 tonnes, all using the same process control
technology. The end-users of SinterCast-CGI components include Aston
Martin, Audi, Caterpillar, Chrysler, Ford, General Electric
Transportation Systems, General Motors, Hyundai, International Truck
and Engine, Jaguar, Kia, Land Rover, MAN, MAN B&W Diesel, PSA
Peugeot-Citroën, Rolls-Royce Power Engineering, Toyota, Volkswagen,
Volvo and Waukesha Engine. The SinterCast share is quoted on the
Small Cap segment of the Nordic Exchange, Stockholm
(Stockholmsbörsen: SINT).
END
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