In September 2019, Bharat Forge America Inc. made an investment of $56 million to establish a new forging and machining facility in North Carolina, USA. This strategic move will expedite the company's concentration on lightweight material, which is gaining prominence across sectors like automobile and aerospace. The new factory is likely to assist Bharat Forge in meeting the rising need for advanced, lightweight components. This investment is also part of the company's long-term vision to expand its global manufacturing presence, including increasing its footprint in North America as well as in Europe and Asia. Bharat Forge will enhance its global competitive edge by diversifying its manufacturing base and concentrating on high-growth segments.
In September 2019, American Axle Manufacturing Inc. announced that it was selling its iron casting division to a New York-based private equity company for $245 million. The strategic move was to simplify the company's operations and concentrate on its core competencies, promoting the development and growth of more focused business areas through advanced technology. American Axle wanted to enhance its financial health and concentrate resources on more profitable segments by divesting its iron casting division. The firm also confirmed that it would maintain it’s forging facility in Mexico, which is a significant component of its manufacturing capacity. The move demonstrates the commitment of American Axle to the strengthening and development of its operations in high-demand markets, as well as streamlining its overall business portfolio with cutting-edge technology for long-term growth, profitability, and continued development.
In March 2018, Allegheny Technologies Inc. (ATI) revealed that its Ladish plant in Cudahy would be expanded by $95 million. The proposal for expansion involves the addition of a fourth iso-thermal press to enhance the forging capabilities of the plant and significantly enhance its heat-treating capacity. The enhancement is meant to counter the growing demand for aerospace-related products, making the Cudahy plant a major force in the aerospace business. By expanding its capabilities, ATI aims to be at a competitive edge in the high-performance materials business, especially in the aerospace market. The investment shows ATI's commitment to the advancement of manufacturing technology and fulfilling its customers' requirements for high-quality, precision-engineered parts.
Based on report by Coherent Market Insights, the forging industry was valued around USD 71 billion in 2019 and is expected to be around USD 95.8 billion by 2027 at a compound annual growth rate (CAGR) of 4.8% during the forecast period.
Market is segmented by type, such as open die, closed die, rotary, and others; by end-use industry, such as automotive, mining, construction, aerospace and defense, and others; by order, such as custom and catalogue forging; and by raw material, such as aluminium, magnesium, stainless steel, and others.
Asia Pacific leads the forging market regionally, with China as a leading producer, followed by North America and Europe. The automotive industry strongly contributes to market growth based on the growing need for forged parts in car production. Nevertheless, factors like huge initial investment expenses and competition from other manufacturing methods like extrusion and stamping can affect market growth.
Sources
News outlet: Economic Times
Company: Allegheny Technologies Inc., American Axle Manufacturing Inc
