Released on November 16, 2011

Grupo Industrial Saltillo S.A.B. de C.V., Saltillo, Mexico, announced it has reached an agreement to sell its iron block and head business, which includes Cifunsa Diesel and Technocast, to Tupy S.A., Joinville, Brazil.

“We reached an agreement with Tupy to sell [only] the blocks and heads business produced [on] horizontal molding lines,” said Luis Arenas, strategic planning manager for Grupo Industrial Saltillo’s foundry sector. “The auto parts business (calipers, crankshafts, brackets, differential cases and others) produced on vertical molding lines we are keeping and strongly investing in with the recent expansion of our facilities in Saltillo and Irapuato and the agreement we reached with Xignux in August for the acquisition of Tisamatic, a Mexican foundry that produces auto parts like rotors, brake drums and clutch plates.”

Technocast is a joint venture Grupo Industrial Saltillo launched in 2007 with Caterpillar, Peoria, Ill. The acquisition of Technocast and Cifunsa Diesel will move Tupy into the Mexican market, further opening North America to the South American company.

According to a statement issued by Cifunsa, the deal is expected to be completed in the next three months. Operations of all plants involved are expected to continue as usual during the acquisition period.