Let's talk about Cost Savings with Rheocasting

Like the automotive industry in general, the foundry industry is currently in a tough time. That is no secret to anyone. The latest tariff shocks did not help that situation, as instead of focussing on new products and improving existing production lines, people are scrambling to analyze how the daily changing tariffs impact their customers.

The cost pressure is still there and will increase in the future. However, foundries don’t have many levers to impact their cost structure. There is a natural cost limit to what it costs to operate and maintain an HPDC cell in good condition. The investment costs are comparable throughout the brands, and the spare parts costs are similar. The only variable cost is the salary of your technician. As soon as the machine builder steps foot in your foundry for overhauls, the costs are pretty much the same again. The same is true for the machining centres, furnaces, heat treatment lines, and other necessary machinery.

The next big cost block in part prices is the alloy. The alloy costs face constant fluctuations and are not fixed in the part price. They get adjusted with the customer based on stock pricing monthly or quarterly. So, it is basically the same worldwide. This might be different depending on the level of recycled content.

How to actually reduce costs?

The costs of maintaining the machine are pretty similar across brands for the same machine size. So, if you get larger parts on smaller machines, you can generate cost benefits for your foundry, which equals a higher margin.

Especially, if you’re operating mid to large-size machines, the cost advantages add up quickly as the machine costs nearly rise exponentially with the machine size. As an estimate, a 6200-ton machine is roughly double the cost of a 4400-ton machine when you also factor in the peripherals.

You probably guessed it already: Rheocasting allows you to reduce the machine size and, therefore, the operating costs between 6,7% and 31.7%. The smaller savings are on the small machine segment, as the investment in the slurrymaker is a larger percentage of the machine price.

This calculation also only works when you use a high solid fraction between 30 and 45% and modify the gating system to accommodate the thixotropic slurry’s low and laminar filling speeds.

So, what is the machine size reduction on average for the same part:

660-ton HPDC —> 420-ton Rheocasting

1050-ton HPDC —> 660-ton Rheocasting

1600-ton HPDC —> 1050-ton Rheocasting

2500-ton HPDC —> 1600-ton Rheocasting

3500-ton HPDC —> 2200-ton Rheocasting

4400-ton HPDC —> 2500-ton Rheocasting

5000-ton HPDC —> 3200-ton Rheocasting

6200-ton HPDC —> 4400-ton Rheocasting

One of the major reasons why smaller machines are possible for thixotropic slurries in Rheocasting is that you can modify the gating system to allow for longer feeding distances. The second reason is that a slurry flows and feeds better than a liquid melt, which does not require that high pressures. And the last reason is that the hydrostatic pressure, which wants to open the machine in the third phase, only works on liquids. So, when you already have 35 to 45% of the solid fraction, that reduces the effective pressure drastically.

Not included in this calculation is the possibility of buying smaller tools that last longer (+ 60 to 100%), lower energy costs, interest rates, PPAP costs, and rejection rates.

How to utilize this information?

Use this to outcompete suppliers in low-cost countries on the same parts, as you have an “unfair” advantage. Or use your current empty capacity to acquire new business by utilizing one of the other advantages of Rheocasting.

Let’s discuss what application best fits your product spectrum and target. Schedule a Free Consultation Call below this article to get these insights firsthand!