SOURCE: Shiloh Industries
VALLEY CITY, OH--(Marketwired - Feb 11, 2014) - Shiloh Industries, Inc. (NASDAQ: SHLO), a leading supplier of lightweighting, noise and vibration solutions, announced today that its subsidiary, Shiloh Die Cast Midwest, plans to inject new capital and expand its two facilities in Indiana to support new increased demand from automakers for advanced lightweighting technologies. The company will invest $7.8 million to renovate and add new equipment to two separate manufacturing sites in Indiana; a 120,000 square-foot facility in Auburn and a 106,000 square-foot facility in Pierceton. The renovations and increased capacity will be implemented by 2016 and add 150 new jobs to the facilities by 2018.
"Indiana is well-situated for us to serve our customers in the northern US market, and Shiloh is committed to grow in Auburn and Pierceton," said Ramzi Hermzi, president and CEO of Shiloh Industries. "One of the biggest challenges in the automotive industry is to reduce vehicle weight to meet fuel economy standards. That challenge is a big opportunity for Shiloh and our Indiana facilities as we continue to invest and upgrade in the latest lightweighting technologies. With this commitment to Indiana and advanced technology, we believe Shiloh will remain an employer of choice in the region."
Founded in 1950, Shiloh provides design, engineering and manufacturing of first operation blanks, engineered welded blanks, complex stampings, modular assemblies and highly engineered aluminum die casting and machined components serving the body-in-white, chassis, emission, powertrain, structural and seating needs of OEM and Tier 1 customers. In January 2014, the company announced its common stock was upgraded to the NASDAQ Global Select Market, the highest of the three market tiers at NASDAQ.
"Thanks to cooperation from the Indiana Economic Development Corporation, we are now able to increase opportunities for these facilities by expanding our capacity for a very high demand product in the auto industry," added Hermiz.
As automakers face pressures to meet the federally mandated fleet average of 54.5 miles per gallon by 2025, aluminum is quickly becoming part of the lightweighting solution. For every 10 percent reduction in vehicle weight, there is a 5 to 7 percent reduction in fuel consumption.
"It is very exciting for us to invest in what I call the 3P's: people, programs and plants," said Gerald Craycraft, plant manager at Shiloh's Auburn facility. "The upgrades to this facility will allow us to add capacity for squeeze casting and ThinTech™ structural castings, one of our industry-leading lightweighting technologies that help our customers reduce vehicle weight."
Shiloh Industries currently employs more than 2,000 associates across North America, 86 of whom are in Auburn and 107 in Pierceton. The company will start recruiting to fill the 150 new positions beginning this year.
"We see increased demand across the automotive industry for innovative lightweighting technologies and these facility upgrades will allow us to increase capacity and offer our customers more solutions," said Randy Kinsey, plant manager at Shiloh's Pierceton facility.
About Shiloh Industries, Inc.
Headquartered in Valley City, Ohio, Shiloh Industries is a leading supplier, providing light weighting and noise, vibration and harshness (NVH) solutions to automotive, commercial vehicle and other industrial markets. Shiloh delivers these solutions through design, engineering and manufacturing of first operation blanks, engineered welded blanks, complex stampings, modular assemblies and highly engineered aluminum die casting and machined components serving the body-in-white, emission, powertrain, structural and seating needs of OEM and Tier 1 customers. The company multiple locations across North America, including Georgia, Indiana, Kentucky, Michigan, Ohio, Tennessee, Wisconsin and Mexico, and has approximately 2,000 employees.