Hydro, the parent company of Magnolia’s Alumax Bath Enclosures, is investing about $46.5 million in a new extrusion press at its aluminum manufacturing plant in Suzhou, China.
The press will serve China’s growing automotive and electric vehicle market.
While the new P60 12-inch press will increase extrusion capacity at Suzhou, the investment also covers an expansion of the plant.
The investment will create 75 new jobs for the organization in Suzhou.
“We’ve succeeded in building a platform in China toward the e-vehicle market, but we need more capacity to satisfy the market’s demand for high-end and safety-critical components. This is directly in line with our strategy and it is why we are making this investment now,” said Paul Warton, executive vice president who leads Hydro’s Extrusions business.
Examples of the automotive components include crash management systems such as bumper beams and crash boxes, as well as side sill inserts, side beams and longitudinal beams.
These products utilize proprietary high-strength alloys and feature strong competence on quality systems. The new press will also support other customer needs ranging from mill-finished extrusions to fabricated assemblies.
Hydro expects to extrude the first billet from the new press in mid-2023.
“The new press will play an important role in helping us secure long-term customer business and will support our global product offering with a strong presence in China. We are very excited about the decision to continue investing in China,” said Senior Vice President Erik Fossum, who is responsible for the Chinese operation as head of the Precision Tubing business unit.
Hydro Extrusions employs 21,000 people in 40 countries.