The Second Life of HPDC Machines

We have all seen it for months: the overall foundry market is declining. The German foundry association reported an 11% decline in the first six months of 2024. And we have seen foundry groups, like the ae group, file for bankruptcy. Others are preparing to fire people or close down whole plants to avoid insolvency. Therefore, this article is not about how to sell HPDC machines, as no one is buying them because everybody faces the same trouble: “What castings can I put on these machines?”

Where did all the Castings go?

This question hits foundries with smaller DCMs much harder, as powertrain parts decrease in volume and smaller structural castings get integrated into larger sections. So, where can the second life of these machines be found when the portals are empty, or the target prices don´t even cover the costs?

It is a tricky situation that cannot be solved by the same method that got you into this mess. You might be used to shopping in high-end stores and interacting with the most desirable brands. But they barely know who you are regarding favours for new products. So, the nice OEM portals and contacts are pointless when filling out your small DCMs.

It is not better on the Tier 1 portals. There are even more foundries competing for the cheapest price. Now is the first time you must start looking around and looking for new businesses on your own to give your production site a second chance for future life.

And this market development will feel like a second-hand store!

You will see the casting equivalent of fashion trends that died a decade ago. They are so outdated that they are not even usable for a bad-taste party or translating into our industry language: They don`t fit your production mix. And there are a lot of them!

After much searching, you might find a piece that is not the most beautiful but fits roughly. But it is not the hidden gem of a designer piece you can instantly flip for a profit. The other issue is that many people are looking for that perfect piece, as many foundries are searching for the same products. And the price war repeats itself.

Where is the store that no one knows about?

This store is hidden in plain sight! But it is part of an exclusive club. You need a membership to get in. Let me explain:

In the last few years, we have seen HPDC run into its limitations. Providing high mechanical properties after 2.5 meters of flow length is a challenge. It is impossible to cast CO2 compressor housing in HPDC, which the EU requires from 2026 onwards. In addition, the electronic components in our cell phone towers or cars have become so powerful that the thermal conductivity of AlSi10MnMg is the bottleneck of computing power.

Rheocasting is the exclusive ticket into a new world of applications. The silicon content does not determine the castability in Rheocasting. An AlSi2 casts similarly well to an AlSi7. AlSi2 delivers thermal conductivities close to those of pure aluminium. You can cast 2.2 meters on a 600-ton DCM (yes, 600-ton, it is not a typo). With its laminar fill, you get helium-tight compressor housings and similar castings in your foundry. And there is way more to explore!

Now, you’re finally competing on a level all the others cannot. It feels like an unsupervised kid in a candy store instead of a dated second-hand shop. You can get lucrative contracts and be at the forefront of future developments.

Before you start dreaming, there are still strings attached. Just buying a machine will not get you into business. You must master the technology first, then implement the different requirements and prove them in trial castings for your customers.

That is a tiny price to pay for decades of profitable castings on your already-made investment!

Market development is a new task for foundries in their sales process and a massive challenge for most. But Casting-Campus GmbH can be your partner in developing the market together. Take a deeper look into the Rheocasting Strategy Development package. Or schedule a free consultation call down below to inquire about Rheocasting today.