Caterpillar Signs Deal with SinterCast
20 November 1998
Caterpillar Signs Deal with SinterCast
World Leading Engine Producer Caterpillar of USA and Swedish SinterCast Sign
Exclusive Agreement for Series Production of Large Diesel Engine Components in
Compacted Graphite Iron
STOCKHOLM, Sweden, Nov. 19 -- Caterpillar, the world's
largest manufacturer of medium speed engines and one of the world's largest
manufacturers of high speed Diesel engines, has signed an agreement with
SinterCast AB (publ) of Sweden, with the intention to produce engine
components, such as cylinder heads and engine blocks, in Compacted Graphite
Iron (CGI) using the SinterCast Process Control Technology. Simultaneously
Caterpillar has placed an order for a SinterCast System 2000 to be installed
in Caterpillar's Mapleton foundry in Illinois, USA. Series production is
scheduled to start from the beginning of 1999.
The agreement is the result of a thorough two-year evaluation of the
SinterCast technology to verify its suitability for volume production of
Caterpillar Diesel engine components.
Caterpillar has experienced the benefits of Compacted Graphite Iron in
limited production since 1985 and has now made the strategic decision to use
SinterCast technology for volume CGI production.
The agreement provides Caterpillar with the SinterCast Process Control
Technology and simultaneously grants SinterCast an exclusive right to supply
CGI technologies to the Caterpillar organization world-wide.
Caterpillar, often referred to as the world's number one manufacturer of
construction-, mining- and agricultural equipment, and proprietor of one of
the world's strongest and best known trademarks, reported sales and revenues
of $18.9 billion and profits of $1.7 billion in 1997.
Caterpillar's Engine Division produces Diesel Engines with ratings from
54 to 13,600 hp, aimed towards a wide variety of applications such as trucks,
construction equipment and marine diesels. In-house foundry casting capacity
exceeds 150,000 tonnes of grey and ductile iron in addition to which some
significant volumes are produced by sub-suppliers.
Mr. Bertil Hagman, President & CEO of the SinterCast Group, comments:
"The contract with Caterpillar, a world leader in this industry segment is
a valuable reference for SinterCast and proof of the recognition of the
SinterCast Process Control Technology. We know that Caterpillar have reached
their decision to select SinterCast after extensive research and evaluation of
SinterCast and possible alternatives.
"This contract is important as the very first commitment from a producer
of heavy Diesel engines to use Compacted Graphite Iron on a large scale. The
selection of SinterCast as technology supplier verifies SinterCast's position
as the industry leader in CGI Process Control Technology. The acknowledgment
of Compacted Graphite Iron as a material and the choice of SinterCast as
supplier of the manufacturing technology is especially significant as
Caterpillar is recognized throughout the world as an industry leader,
spearheading new technologies and leading its contemporaries."
A large European passenger car producer has -- as previously announced --
placed an order with the German foundry Halberg Guss for the production of a
new passenger car Diesel engine in CGI. SinterCast has completed the
installation and actual production is expected to start early 1999.
SinterCast has earlier announced two installations at Sakana, Spain and
VDP, Italy for the production of large (10-17 tons) engine blocks for
stationary Diesel engines produced by Allen Power Engineering Ltd, UK. These
installations are now successfully in production. An installation at Cifunsa,
Mexico, one of North America's largest foundries supplying engine components
to the automotive industry, is currently used for prototype castings awaiting
customer orders for actual series production of CGI components.
Caterpillar is the world's largest manufacturer of medium speed engines
and one of the world's largest manufacturers of high speed Diesel engines.
In-house foundry casting capacity exceeds 150,000 tonnes. Quoted from
Caterpillar's official Website: "We are a growth-oriented, high-tech global
powerhouse -- ready for the next century. We're growing the business in new
directions, diversifying without straying from core competencies, developing
new products, expanding coverage, and offering new and better services to our
customers. Our modernized facilities are efficient, employing state of the
art processes, and we are exploiting the best of information technology."
For further information on Caterpillar: http://www.cat.com
SinterCast is a listed Swedish company which developed and owns the
SinterCast Process, a patented on-line Process Control System which enables
the production of high quality Compacted Graphite Iron (CGI) components on an
industrial scale. CGI is an intermediate form of cast iron which combines
much of the castability, thermal conductivity and vibration damping properties
of grey iron with the strength, stiffness and fatigue resistance of ductile
iron. In Diesel engine block applications, the substantially higher strength,
stiffness and wear resistance of CGI relative to grey iron provides new
opportunities to increase cylinder pressures, save weight, reduce noise,
vibration and harshness (NVH) and increase overall engine performance. CGI
also provides improved bore stability thus reducing frictional losses, oil
consumption and environmentally harmful blow-by emissions. The SinterCast
Process and the use of CGI assist foundries and the automotive industry in
achieving higher environmental standards.
For further information on SinterCast: http://www.sintercast.com
CONTACT: Bertil Hagman, President and CEO of SinterCast AB,
+46-8-660-77-50, or +44-181-891-89-00, or fax, +46-8-661-79-79 or
+44-181-891-89-90, or info@sintercast.com