At present, Arconic, the world's largest investment casting business in terms of output value, (a listed company that was spin-off from Alcoa's aerospace, motor vehicle, and transportation industries) had revenue of US$14 billion in 2018, but its investment casting revenue was only 18 The proportion is not high. It mainly produces high-temperature alloy, titanium, stainless steel and aluminum investment castings for the aerospace and gas turbine markets.
The second-ranked PCC (acquired by Berkshire Hathaway in 2015) had revenue of 11.8 billion U.S. dollars in 18 years, calculated according to the pre-merger business structure (in 2015, Berkshire Hathaway completed the acquisition of PCC with 37.2 billion U.S. dollars). The investment casting production value of PCC is US$3 billion, of which US$1.9 billion is for the aerospace industry (34% market share) and US$900 million for the gas turbine field (30% market share).
In the field of aerospace and two-machine precision casting, PCC is currently the industry's well-deserved leader.
In addition to the above-mentioned companies, among the global independent precision casting companies, only Hitachi and KSB have an output value of more than US$1 billion, but they are mainly for the automotive and industrial sectors. Overall, the head concentration benefits of the overseas precision casting industry are particularly obvious, especially in the aerospace and aeroengine fields. In comparison, there were still more than 26,000 foundries in China in 2018, and the highest output value of HKPY Precision was only US$478 million.
The merger and reorganization of forging and casting companies in the aviation sector is the main reason for the current highly concentrated market structure
For most overseas aviation investment casting and forging head companies such as PCC, LMI Aerospace, and Constellium, horizontal expansion of the industry (inter-bank mergers and acquisitions) is the main means to increase market share.
Since 2010, PCC's sales have increased from 6.209 billion U.S. dollars to 11.18 billion, a compound annual growth rate of 9.6%. In addition to the steady expansion of aviation market demand, the company’s sustained and rapid growth has contributed to the increase in market share as a core factor. The company's market share in the aviation investment casting market has increased from 30% in 2011 to 34% in 2018 (calculated based on the pre-merger business structure). Founded in 1949, the company entered the aviation investment casting field through GE's TF39 engine project, and subsequently acquired the European titanium alloy foundry and TRW casting division of Messier Fonderie D'Arudy in the 1980s, and acquired Advanced Forming Technology and ACC Electronics in the 1990s. , Quamco, Astro Punch, Olofsson Corporation, J&L Fiber Services, Pittler Maschinenfabrik GmbH and Schlosser Casting Company. In 1999, they acquired Wyman-Gordon, the world’s leading aerospace forging manufacturer. After entering the 21st century, the pace of PCC’s mergers and acquisitions Still non-stop. At present, the Boeing 787 airliner relies to a large extent on PCC's products and technology, and the aero engines manufactured by GE and RR are also inseparable from PCC products. Continuous mergers and acquisitions have enabled PCC to occupy a higher position in the aviation forging and casting market.
The merger and reorganization of forging and casting companies in the aviation sector is the main reason for the current highly concentrated market structure
For most overseas aviation investment casting and forging head companies such as PCC, LMI Aerospace, and Constellium, horizontal expansion of the industry (inter-bank mergers and acquisitions) is the main means to increase market share.
Since 2010, PCC's sales have increased from 6.209 billion U.S. dollars to 11.18 billion, a compound annual growth rate of 9.6%. In addition to the steady expansion of aviation market demand, the company’s sustained and rapid growth has contributed to the increase in market share as a core factor. The company's market share in the aviation investment casting market has increased from 30% in 2011 to 34% in 2018 (calculated based on the pre-merger business structure). Founded in 1949, the company entered the aviation investment casting field through GE's TF39 engine project, and subsequently acquired the European titanium alloy foundry and TRW casting division of Messier Fonderie D'Arudy in the 1980s, and acquired Advanced Forming Technology and ACC Electronics in the 1990s. , Quamco, Astro Punch, Olofsson Corporation, J&L Fiber Services, Pittler Maschinenfabrik GmbH and Schlosser Casting Company. In 1999, they acquired Wyman-Gordon, the world’s leading aerospace forging manufacturer. After entering the 21st century, the pace of PCC’s mergers and acquisitions Still non-stop. At present, the Boeing 787 airliner relies to a large extent on PCC's products and technology, and the aero engines manufactured by GE and RR are also inseparable from PCC products. Continuous mergers and acquisitions have enabled PCC to occupy a higher position in the aviation forging and casting market.
Constellium is a leader in the world's aluminum manufacturing industry and has a dominant position in the aviation aluminum products and large backlog profiles market. Constellium materials are used in F-35 fighter jets. Its 7050 and innovative 7140 alloy have higher strength and corrosion resistance, and are lighter. Many aircraft in service, such as F16 and F-18, also use Constellium alloys. Boeing, Loma, Dassault, Embraer, NASA, SpaceX, Blue Origin, etc. are all company customers. Constellium Aluminum was gradually developed by Alcan's acquisition of century-old aluminum giants Pechiney, Alusuisse and other industry leaders. After listing, it acquired companies such as Wise Metals. Broadening its business scope and customer resources through horizontal mergers and acquisitions is one of the main ways Constellium Aluminum has developed into a global aluminum giant.