In an interview in Svenska Dagbladet, Steve Dawson was quoted as saying: “There are 40 million cars made each year and with Teksid having a 12% market share it means that a little over four million engines a year will be made with SinterCast CGI technology. That is a very positive thing for us.” Is this true? Please clarify.

Shareholder, Hans Ågren

The Teksid agreement is indeed a very positive step forward for SinterCast. Teksid supplies approximately 12% of the world passenger car engine blocks, 11% of the heavy duty (truck) engine blocks and 7% of all truck cylinder heads. Whenever any of these Teksid products are converted to CGI they will automatically be made with the SinterCast technology. Together with the volumes secured through our other foundry partnerships, this puts SinterCast in a very strong position to supply the CGI needs of the world automotive industry. The reference to “four million engines per year” represents the potential of the Teksid agreement. The four million passenger car engines is the total production of all the Teksid iron foundries worldwide.

The foundry industry is very serious about capital investment. They invest in technology, like the SinterCast System 2000 process control technology, to support the needs of their customers and to achieve a return on their investment. The decision by Teksid, and our other foundry partners, is a signal that CGI is coming and that SinterCast will be the preferred CGI technology provider.