Gigacasting at Handtmann: ‘We could accept more orders than we currently have capacity for.’
The Handtmann Group is the first European Tier 1 to enter Gigacasting. Production on the Bühler Carat 610 extended has been underway in Biberach since 25 October 2024. This was preceded by a huge investment in the new technology, which could set an example for the industry. Handtmann is currently producing three series parts - two battery trays and a structural component - for well-known OEMs. EUROGUSS 365 spoke to Dirk Seckler, Managing Director of Light Metal Casting, about further developments.
Mr Seckler, what does the successful entry into Gigacasting mean for Handtmann's path to becoming an ‘innovative competence and solution provider’?
Dirk Seckler: Our vision is to develop from a build-to-print provider to a solution provider - transformation through innovation. To this end, we are working with partners and customers to offer solutions that provide a sustainable competitive advantage and are not yet available on the market. As a provider of Gigacasting, we can manufacture components ‘in a single mould’ that were previously traditionally welded. This means the production of just one component, which previously consisted of around 130 individual parts. This results in cost advantages of up to 30 per cent and weight advantages of up to 20 per cent. OEMs also have enormous advantages in supplier and change management. With our entry into Gigacasting, we at Handtmann are skipping an evolutionary stage. Gigacasting is currently the Champions League in die casting.Many OEMs have certainly noticed that you have entered the new technology. Have you already noticed an increase in demand from them?
Dirk Seckler: Yes, we are sensing enormous interest and potential. We could already accept more orders than we currently have capacity for. And we can see that our competitors are also getting into Gigacasting. That's a good sign, competition is always good. This also eases the situation regarding a lack of production capacity, which was currently one of the biggest barriers to entry.
Will you be upgrading other company locations, such as your plants in China, accordingly?
Dirk Seckler: There are currently more than 110 so-called Gigacasting machines on the market in China. However, their capacity utilisation is only 30 percent, which means that there is massive overcapacity. Against this background, it makes no sense for us to take the technology to China. However, we are indeed planning to build up capacity in Europe and the USA - we will see at which locations.The transformation to electromobility is progressing more slowly than desired and expected. Does that worry you?
Dirk Seckler: It doesn't worry us, we are currently participating very strongly in the demand for combustion vehicles. In recent years, forecasts in Europe have shown an increase in pure BEV vehicles from 21 per cent to 64 per cent in 2030. By comparison, China is forecasting a share of around 41 per cent in the same period. We took a critical look at the growth figures in Europe and decided to take a much more critical view of the development of e-mobility. We now see ourselves vindicated in this strategy. We expect the electrification rate in Germany to be between 40 and 50 per cent in 2030. What happens in the markets outside Europe will also be decisive.
How complex or difficult was the construction/testing phase of your Gigacasting system? Did it all go smoothly?
Dirk Seckler: It's never without problems, especially when you integrate Gigacasting into the existing production environment. We had to readjust some of the assumptions and calculations. All in all, however, we were able to keep to the schedule and project plan. I would like to take this opportunity to thank the entire team once again. That was a mega achievement.
What is your outlook for Gigacasting at Handtmann?
Dirk Seckler: The most important thing is that the business case is around 20 to 30 per cent cheaper than the previous processes. This is the basis for justifying the high investments in Gigacasting. Gigacasting has the potential to revolutionise the die casting industry.
Thank you for the interview