Guangdong Hongtu plans to set up factories in North America for the Detroit 3

Guangdong Hongtu announced that it received a visit from a research firm, during the meeting, its global expansion goals were discussed.

Guangdong Hongtu is ramping up its global game by scouting for suitable overseas production bases around the world, especially in North America, Mexico, Southeast Asia, and Europe.

The aim? To better serve big names like the three major North American automakers and international auto parts groups, with a focus on reducing logistics costs and boosting supply chain efficiency.

Currently, Guangdong Hongtu's export business accounts for 20% of its total revenue, of which North America accounts for 90% of its export business. General Motors is one of the company's top five customers. They're pushing hard into the new energy vehicle sector, aiming for over 30% of their business revenue from this area this year, with a target of over 50% by 2025.

Guangdong Hongtu is supplier the only company operating both a 12,000 ton and a 16,000 ton Giga Press. Both machines made by LK Group are record-breaking in terms of clamping force.

Nio’s sub-brand, Onvo, won’t utilize Gigacastings for now

With the launch of Onvo’s website and the start of production of the Onvo L60, the first vehicle realized by Nio’s sub-brand, I was able to gather more details about the body structure of this Chinese Tesla Model Y competitor.

It is no coincidence that I called the L60 a competitor of the Model Y because the Model Y, the first vehicle built with Gigacastings, was initially produced using two separate Megacastings in the rear underbody.

I thought that Duoli would provide Gigacastings to Nio for their new Onvo L60. This was because, in March, Chinese media reported that the CEO of a Duoli subsidiary mentioned they would supply Gigacastings for two of Nio's new models in the second half of 2024.

But I was wrong, the L60, just like Tesla’s Model Y at the beginning, will only use two separate Megacastings for the rear underbody section of the car.

Here you can see the Onvo L60 Rear Underbody Megacastings.

$98,000,000 for a new magnesium thixomolding plant in China

Xingyuan Zhuomei has recently announced it plans to raise 562 million yuan ($78 million) for a project aimed at producing 3 million sets of large-scale magnesium alloy parts for automobiles annually.

The total investment of 700 million yuan ($98 million) is needed to establish a R&D, production and sales base focused on lightweight magnesium alloy products. Xingyuan will focus on “magnesium injection molding” or “magnesium thixomolding” in order to produce higher quality and higher strength parts for lightweight automobiles.

The main products of Xingyuan Zhuomei’s new investment will include electric motor parts, display mounts and center consoles for automobiles.

Xingyuan Zhuomei is a Chinese company specialized in the large scale production of magnesium thixomolded parts. It has several thixomolding machines made by Yizumi with up to 2,000 tons of clamping force. I wouldn’t be surprised if this project will see the installation of Yizumi’s future products, like a 5,000 tons Thixomolding machine capable of injecting around 20 kg of Mg alloys.

Magnesium Shock Tower produced with a 3,000 ton Thixomolding Machine

Great Wall Motors, Baosteel Metal and Haitian successfully test produced a magnesium alloy shock tower at Haitian's global test production center in China.

The magnesium alloy shock tower was realized using an HMG 3000, which is a 3,000 ton Thixomolding machine capable of injecting up to 10 kg of semi-solid Mg alloys. The shock tower was reported to be defects free with no porosity or cold shuts.

Magnesium alloy components reduce weight more than 30% compared to their aluminum alloy equivalents, not only that but the advantage of using semi solid processes such as Thixomolding, further reduce porosity and costs while improving mechanical properties. The improved properties are possible thanks to the laminar flow behavior of the semi solid slurry injected into the die.

Haitian plans to launch Thixomolding with a higher clamping force, up to 5,000 tons, by the end of this year as well as thixomolding technology for thick walled components such as Motor Housings.

US bans imports of products from 3 Chinese companies operating in the magnesium supply chain

The U.S. Department of Homeland Security (DHS) has added five new Chinese entities to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, increasing the total to 73 entities. These companies are now presumed to use forced labor in their operations. Starting August 9, 2024, U.S. Customs and Border Protection (CBP) will enforce a rebuttable presumption against goods from these companies, effectively banning their import into the U.S. unless proven otherwise.

The three companies interested by the import bans are:

Century Sunshine Group: This Hong Kong-based company, specializing in the manufacturing of magnesium alloys, has been flagged for sourcing magnesium from the Xinjiang Uyghur Autonomous Region (XUAR). The U.S. government has identified that through its subsidiaries, Century Sunshine has established a magnesium production base in XUAR, directly linking it to forced labor practices under the UFLPA.

Rare Earth Magnesium Technology: Also based in Hong Kong, this company is a subsidiary of Century Sunshine, focusing on magnesium alloy products. It similarly sources magnesium from the XUAR, operating under the same vertical integration that involves forced labor, thus qualifying for inclusion on the UFLPA Entity List.

Xinjiang Tengxiang Magnesium Products: Located in Hami, Xinjiang, this company not only produces magnesium and its alloys but is also accused of working directly with the XUAR government to utilize forced labor from persecuted groups. Additionally, it sources essential raw materials like coal and dolomite from within the XUAR, further entrenching its operations in the region's controversial labor practices.

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This Week’s Gallery

Tesla’s Gigafactory Texas activity by Joe Tegtmeyer

Chinese state TV acknowledges Yizumi's four 7,000 ton Giga Presses operating at Changan plant to produce the Nevo E07 Front and Rear Gigacastings. For the video click here

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