Nemak acquires GF Casting Solutions automotive business

Georg Fischer

Nemak acquires GF Casting Solutions automotive business to accelerate its EV strategy and expand globally. The Nemak acquires GF Casting Solutions automotive business deal totals $336mn and adds eight plants. As a result, Nemak acquires GF Casting Solutions automotive business capacity in HPDC for EV structures and chassis.

Strategic rationale: EV push and global reach

Nemak strengthens its EV exposure with premium European and Chinese OEM access. The acquisition covers plants in Austria, China, Romania, and Germany. Meanwhile, Nemak will also control GF’s new Augusta, Georgia facility. The US site targets production start in 2027.

Capacity, customers, and product mix shift

The deal adds high-pressure die casting capacity across aluminum and magnesium. Therefore, Nemak can shift from ICE powertrain parts toward structural and chassis castings. GF Casting Solutions reports 80% of offerings tied to e-mobility and structures. This alignment supports EV battery housings, motor housings, and lightweight subframes.

Nemak gains geographic diversification and scale synergies. The company expects supply chain efficiencies across Europe, China, and North America. Furthermore, the added footprint enhances customer intimacy and program launches. Management plans to integrate technology, quality systems, and program management.

Governance and scope remain clearly defined. The transaction excludes GF’s aerospace and IGT die-casting units. It also excludes the company’s iron foundry operations. Closing is planned for the second half of 2025, subject to approvals.

The Metalnomist Commentary

This move consolidates HPDC leadership as EV platforms demand larger, integrated castings. Watch for Augusta ramp timing and European program wins to drive returns. Synergies will hinge on load balancing, scrap reduction, and multi-alloy flexibility across sites.