Series Production Continues at Record Pace, Positive Installation Outlook for 2011
* Series production running at record pace of 1.35 million Engine Equivalents
per year
* New Installation discussions at advanced stage, with one undisclosed
installation completed
* New US fuel economy legislation can provide opportunities for diesel growth
in North America
[Stockholm, 8 August 2011] - Series production remains strong and stable, with
annualised production running at a record rate of 1.35 million Engine
Equivalents (67,500 tonnes/year). The production is well above SinterCast's
break even volume and is expected to increase during the second half of the
year. SinterCast is currently supporting product development and pre-production
programmes for passenger vehicle, commercial vehicle and industrial power
applications, including some high volume programmes that have already been
approved for series production. These programmes provide continuous growth
opportunities.
During November 2010, SinterCast indicated that 2011 provided the potential to
be the strongest year for new installations in more than a decade. This was
reconfirmed at the 19 May 2011 Annual General Meeting as a target for five new
installations. Thus far during 2011, SinterCast has announced new installations
at the Daedong and Daeshin foundries in Korea. A third installation has
recently been completed at an undisclosed international cylinder block and head
foundry, although the installation has not yet been announced due to
restrictions by the foundry, pending the start of high volume series
production. A formal announcement will be made when approved by the foundry and
the end-user. The installation outlook remains positive for the second half of
the year, with discussions at advanced stages in Asia and the Americas.
SinterCast maintains the goal of securing five new installations during 2011.
On 29 July, the Obama administration announced new fuel economy standards for
cars and light trucks that will require significant improvements in fuel economy
and greenhouse gas emissions. Building on stagnant CAFE standards of 27.5 miles
per gallon (mpg) since 1975, the Obama administration introduced a new CAFE
standard in 2009 requiring 35.5 mpg for new cars and light trucks sold in 2016
and beyond. The new standard requires a further increase to 54.5 mpg for all
new cars and trucks sold in the United States in 2025. Administration officials
have indicated that the 54.5 mpg standard would reflect combined fuel economy of
62 mpg for cars and 45 mpg for pick-up trucks. Of greatest importance to
SinterCast, and a part of SinterCast's message to Washington as a member of the
United States Coalition for Advanced Diesel Cars, the new CAFE standard is
technology neutral, focusing on the specific fuel economy goal rather than
prescribing the technology path. The new CAFE standards provide an improved
opportunity for the increased use of fuel efficient diesel engines in North
America.
"All of SinterCast's key indicators, including field trials, installations and
series production show positive development and provide the basis for
SinterCast's best ever full year result" said Dr. Steve Dawson, President & CEO
of SinterCast. "The successful growth, combined with positive feedback from our
customers provides a deep source of motivation for the employees as we enter
what promises to be a very busy second-half of 2011."
For more information, please contact:
Dr. Steve Dawson
President & CEO
SinterCast AB (publ)
Tel: +46 8 660 7750
e-mail: steve.dawson@sintercast.com
Website: www.sintercast.com
SinterCast is the world's leading supplier of process control technology for the
reliable high volume production of Compacted Graphite Iron (CGI). With at least
75% higher tensile strength, 45% higher stiffness and approximately double the
fatigue strength of conventional grey cast iron and aluminium, CGI allows engine
designers to improve performance, fuel economy and durability while reducing
engine weight, noise and emissions. SinterCast produces a variety of CGI
components ranging from 2 kg to 17 tonnes, all using the same proven process
control technology. The end-users of SinterCast-CGI components include Aston
Martin, Audi, Caterpillar, Chrysler, DAF Trucks, Ford, Ford-Otosan, General
Electric Transportation Systems, General Motors, Hyundai, Jaguar, Jeep, Kia,
Land Rover, MAN, Navistar, Porsche, PSA Peugeot-Citroën, Renault, Rolls-Royce
Power Engineering, Scania, Toyota, Volkswagen, Volvo, VM Motori, and Waukesha
Engine. The SinterCast share is quoted on the Small Cap segment of the NASDAQ
OMX stock exchange (Stockholmsbörsen: SINT). For more information:
www.sintercast.com
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