Rheinmetall wins another new order for engine blocks; “last man standing” strategy in ICE sector pays off
Rheinmetall has won a new order in the internal combustion engine sector, a result the company says indicates its “last man standing” strategy. Placed by an alliance of two globally active, well-known automakers, the order encompasses several hundred thousand engines blocks worth a figure in the mid-double-digit million-euro range.
The part ordered is a 4-cylinder engine block produced in a high-pressure die-casting process. Starting in autumn of this year, the cast parts will be produced and pre-machined at Rheinmetall’s plant in Neckarsulm for a period of four years. The customer will be responsible for final processing and assembly. The companies here have a long-established working relationship in the high pressure die casting engine block domain, meaning that follow-up orders can be expected in future.
KS HUAYU AluTech GmbH will carry out the project in Neckarsulm, Germany. The company is a joint venture co-owned by Rheinmetall and HUAYU Automotive Systems Co., Ltd. (HASCO), a subsidiary of China’s SAIC Group. Castings business unit Rheinmetall AG’s division Materials and Trade consists of two large companies: KS HUAYU AluTech GmbH in Europe and HASCO KSPG Nonferrous Components (Shanghai) Co., Ltd. (KPSNC) in China. Rheinmetall and HASCO each hold a 50% stake in the joint venture.
The order also underscores the Group’s expertise as a competent partner of the global auto industry— and not just for modern electric vehicles but also for hybrid models, which, especially for short distance trips, reduce fuel consumption and therefore CO2 emissions, reducing pressure on the environment and climate.
In parallel, Rheinmetall has recorded a growing number of orders for components and systems for modern, environmentally friendly e-mobility. These orders highlight the Group’s important role in the automotive industry’s ongoing transformation to complete e-mobility.