Aluminum Die Caster Eyes Expansion in Indiana as Automakers Increase Aluminum Use in Engines and Transmissions

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Ryobi Die Casting Corporation, a wholly owned subsidiary of Ryobi Limited (Hiroshima, Japan) is performing preliminary studies to expand its U.S. aluminum die casting capabilities. The company is looking at a major renovation of the existing Shelbyville, Indiana plant, including machine rebuilds, relocations, and equipment additions over the next two years. Estimated capital expenditures will exceed $20 million over that time period.

Ryobi is looking at adding three new 3,500 ton aluminum die casting machines over the next two years as new business for aluminum transmissions are forecast. The company indicated that recent orders for aluminum transmissions and engines for 2004 and 2005 are spurring the company to expand in 2003.

Contractors will be hired to assembly and install the die casting machines, which have an assembly weight of 200 tons.

Other plant work includes switching from mechanical automation systems to robotic automation systems.

The Shelbyville plant is located on 58 acres and is housed in three building totaling 533,000 square feet of manufacturing space. In 1992 the company underwent a $26 million expansion. In 1997 Industrialinfo.com reported on a $30 million 120,000 square foot expansion for a new automotive transmission casting plant addition.

Ryobi Die Casting is one of the companies recently selected by Ford Motor Company (NYSE:F) (Detroit, Michigan), to supply a variety of aluminum components for two new transmissions in the Ford Five Hundred sedans and CrossTrainer sport wagons scheduled to enter the market in 2004.

Ryobi is one of the largest independent aluminum die casting companies in the world with plants in Japan, UK, and Ireland. The company melts 700,000 Lbs/day at its Shelbyville melt shop. The company started operating in Shelbyville in 1985 as it was attracted to the area's strong supplier base and labor workforce.