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TGI
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(Formerly Tadir-Gan) reports that its subsidiary, Ortal Magnesium Works, will increase the production of magnesium assemblies for Chevrolet vehicles of the American car giant General Motors (GM), as part of the expansion of an existing production agreement. The estimated value for money as a result of the expansion is about $ 16 million.
As a result of the expansion, production volume for General Motors vehicles is expected to rise to about $ 80 million over five years, assuming current magnesium prices are maintained. Magnesium assemblies are components used in a vehicle’s propulsion system, and are manufactured by means of precise, machined and complex pressure castings. Ortal will begin expanded production immediately.
Last month, the company signed a non-binding memorandum of understanding to acquire control (55%) of Lorden for NIS 13 million. This, along with a conditional consideration of up to NIS 8 million in accordance with the company’s results in the next three years. The acquisition of control of Lorden came against the backdrop of a change in the company’s name, as part of a new strategy led by its management. Last month, the company reported that it had entered into an agreement to acquire Tamash Metal and Electric Industries in exchange for NIS 51.5 million in cash and an allotment of 16.4% of its shares. Tamash is engaged in the development, production and marketing of electrical cabinets, auxiliary equipment for electrical panels and various metal products. The company’s products are mainly intended for the industrial and construction sectors.
The deal to acquire Tamash Metal and Electrical Industries and the Memorandum of Understanding to acquire control of Lorden join the traditional activity of TGI – manufacturing and marketing magnesium assemblies for the automotive and electric vehicles industry using Ortal Magnesium Castings (100%). Based on 2021 data, the aggregate turnover of the three activities (existing and acquired) of the TGI Group amounts to approximately NIS 220 million.
Barak Dotan, Chairman of TGI: “We are pleased with General Motors’ expression of trust, and see the agreement as another step in the significant recovery process of TGI and Ortal in particular … alongside the framework agreement we have reported … We are working to make TGI a leading industrial group.”
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