Drivetrain systems manufacturer Dana Incorporated agreed to buy manufacturing and other assets of SIFCO S.A., a Brazilian producer of forged and machined components for commercial vehicles. The terms of the purchase have not been announced, but Dana president and CEO James Kamsickas said the deal would position the Ohio-based company “for future profitable growth throughout the region."
Sifco has been in a restructuring process since 2014. Dana’s purchase is subject to closing conditions, including approval by the bankruptcy court and Brazilian regulatory agencies.
Sifco casts ingots and forges and machines parts for front-suspension systems for buses and trucks; transmission components for trucks, buses, light commercial vehicles, cars and tractors; and automotive engine components. Its main plant is a 640,000-sq.ft. operation for lighter forgings at Jundiaí, in the state of São Paulo. It has hammer mills, upsetters, and presses, as well as a die shop, machining and assembly lines, and laboratory and engineering centers.
A smaller, 10,900-sq.ft. plant at Campinas, also in São Paulo, produces heavier forgings with a 40-tm Bêché counterblow hammer, a 6,300-mt press, and a 32-tm Digep counterblow hammer.
Five years ago Dana made a $150 million investment in the Brazilian company, allowing Dana to add SIFCO-produced truck and bus steer axles to its product offerings in South America.
Dana designs, manufactures, and distributes products in Brazil for manufacturing passenger vehicles, commercial trucks, and off-highway equipment.
Now, according to Kamsickas, "This is an opportune time to invest in strategic and selective assets in Brazil that will further strengthen our position as one of the most trusted, top-tier suppliers to the mobility industry …”.
Mark Wallace, president of Dana Commercial Vehicle Driveline Technologies, noted the purchase would add "talent and capabilities needed to help us meet the requirements of our commercial-vehicle customers and provide value for our light-vehicle and off-highway customers, as well."