More and more foundries are filing for insolvency. Are the big players clearing the field?
Eric Müller: Absolutely. Beyond rising energy and material costs, pressure die casting faces the challenge of being an extremely capital-intensive industry. Whether it’s new orders driven by the shift to electrification or traditional component production – both require significant upfront investment. With EBITDA margins averaging just five to seven per cent in Germany, it’s becoming increasingly difficult for foundries to fund such investments and remain economically viable in the long term.
Maintaining flexibility and managing volatility while still operating efficiently is just as difficult. Many of the problems we face are structural rather than technical – and they’re accelerating a market consolidation that began back in 2021.
On top of that, the industry is burdened by significant overcapacity. Much of this capacity can’t be fully utilised and will inevitably disappear – whether through plant closures, insolvencies or deliberate downsizing. To minimise financial exposure and manage ramp-ups more effectively, companies should expand capacity gradually and with maximum flexibility.
Gigacasting is seen as a possible game-changer – but how realistic is it for SMEs?
Müller: In my view, small and mid-sized foundries are simply not in a position to follow this trend. Even putting financial constraints aside, most face serious infrastructure challenges: ceiling heights, floor space and crane capacity are often insufficient – and difficult, if not impossible, to upgrade in legacy facilities.
For many, relocation and new construction become unavoidable – which is often an even bigger hurdle than the machine investment itself. If the new site is not close to a customer plant, transport costs can quickly make the entire business case unfeasible. And even if these issues are resolved, you still have to attract or relocate skilled labour – which increases HR costs, delays ramp-up and weakens existing operations.
At the end of the day, not every trend is worth chasing. There are other, often more practical opportunities to win customers over with smart, targeted solutions.
Let’s be blunt: Is gigacasting really the magic bullet for the industry?
Müller: Gigacasting certainly increases the share of aluminium die cast components in vehicles by replacing other materials. It can make sense for large structural parts – particularly in hybrid vehicles. But I don’t believe it’s the ultimate solution. It’s an important part of a broader transformation, not the answer to everything.
Large components can be produced without gigacasting. By investing in tooling and process innovation, we were able to produce parts designed for 4,400-tonne machines using just a 2,800-tonne die casting press. That’s why SMEs must make the most of their technical expertise, fully understand the limits of their existing machinery and invest strategically.
