Metalsa, one of Genovation's product development partners, sees sales surge 18 May '10
May 18, 2010 -- Metalsa, a closely held Mexican producer of auto frames, said sales may almost triple to $1.1 billion this year, helped by its acquisition of Dana Holding Corp.'s chassis unit and new production in India.
The company will start building commercial truck frames at a factory in Jamshedpur, India, next week, and has joined Tata Motors Ltd. to design and make electric cars for U.S. startup Genovation Cars Inc., said Gustavo Andres, chief commercial officer for Monterrey-based Metalsa.
Metalsa became the second-largest producer of auto frames in North America after completing in March the purchase of Dana's business, adding 10 plants in the U.S., Argentina, Brazil, Venezuela and Australia. Demand is picking up after sales plunged in the U.S. last year, Andres said.
``We're seeing more opportunities as the industry recovers,'' Andres said yesterday in a telephone interview.
The new plant in India has the capacity to produce 600 commercial truck frames daily and is designed to double that amount, he said. Metalsa will sell the frames to Tata and to a joint venture between Mahindra & Mahindra Ltd. and Navistar International Corp., he said.
Metalsa is owned by the Monterrey-based holding company Proeza, which also has interests in foundry, fruit juices, information technology and health care. Magna International Inc. is the largest maker of auto frames in North America.
Genovation, based in Rockville, Maryland, said last week it hired Tata and Metalsa to help design and produce the electric car.
``This is a project focused more on technology development,'' Andres said. ``The sales of electric cars currently aren't high volume.''
Metalsa revenue was about $400 million in 2009, he said. The company builds a light, aluminum frame for General Motors Co.'s Corvette at the Hopkinsville, Kentucky, plant it acquired from Dana, Andres said.
