By acquiring GF's 50% interest, Linamar will become the sole owner of the Mills River plant. Georg Fischer will continue to provide technical assistance during the transition period.
Georg Fischer (GF) is withdrawing from the American GF Linamar, joint property of the Schaffhausen industrial group and the Canadian Linamar. The GF Casting Solutions division, which includes the foundry activities of Georg Fischer, sold to him for an undisclosed amount its 50% stake in the firm based in Mills River, in the State of North Carolina.
GF Linamar started its production activities in 2017 with a die-casting plant in Mills River intended for the production of lightweight components for the automotive industry, said Georg Fischer on Friday. Last year, the site, which employs some 450 people, achieved a turnover of approximately 120 million dollars (109.89 million francs).
The performance of the plant was affected by start-up difficulties, due in particular to the shortage of labor due to the pandemic, explains Georg Fischer. GF Linamar's situation has not improved since 2021, reflecting the instability of customer orders following supply difficulties.
By acquiring GF's 50% interest, Linamar will become the sole owner of the Mills River plant. Georg Fischer will continue to provide technical assistance during the transition period, ie until the end of the year. The closing of the transaction is expected in the first week of April 2022.
The sale does not constitute a change in GF Casting Solutions' long-term strategy to serve the North American market. The division will continue to pursue its objectives defined in the 2025 strategy. The Schaffhausen group considers the effect of the divestment of the joint venture on the operating result (Ebit) neutral.