23/08/2023 | Press release
Rheinmetall wins another new order for engine blocks
- Rheinmetall wins another new order for engine blocks
- Order worth a figure in the mid-double-digit million-euro range
- Group’s “last man standing” strategy a competitive advantage
- Long-established working relationship with globally operating customers
“Last man standing” strategy in internal combustion engine sector pays offThe technology enterprise Rheinmetall has won a new order in the internal combustion engine sector, vindicating 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.
Rheinmetall’s “last man standing” strategy, in which the Group continues to take advantage of existing sales potential in the internal combustion engine sector, proved to be a competitive advantage in the tender. In winning the order, Rheinmetall will be able to make optimum use of existing production capacity. Moreover, the order 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 petrol 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.
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 percent stake in the joint venture.