GF Automotive has unveiled a 50/50 joint venture with machining specialist Linamar of Ontario, Canada.

Together, GF and Linamar Corp. will invest in a new high pressure light metal die casting plant in the US South East, to be known as GF Linamar, starting operations in 2017 with the local production of light metal components for an unnamed European car manufacturer.

Both parties will also cooperate in Asia and in Europe in order to meet their respective customers’ demand for integrated casting solutions.

The joint venture plans to produce lightweight powertrain and structural components.

The overall investment during the next five years will amount to around US$100m and closing of the transaction is anticipated for the beginning of September, this year.

“GF and Linamar complement each other very well combining leading expertise in casting respectively in machining”, said GF CEO, Yves Serra.

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“Our cooperation allows both partners to offer integrated solutions to their customers and for GF Automotive to expand its activities in the promising North American market.”

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