Rheinmetall AG expects to secure 22 million euros worth aluminium pistons order; LOI signed with international carmaker

On Thursday, July 8, Rheinmetall AG has announced that it is expecting to bag a significant order of aluminium pistons from a renowned international carmaker. The German defense and automotive company has also said that it has already signed a letter of intent with the carmaker, and the order value is worth 22 million euros ($25.9 million) in sales volume.

As mentioned in the letter of intent, Rheinmetall will develop and produce customised aluminium pistons, together with piston ring and piston pin, destined for the four-cylinder petrol engine of a new line of passenger cars made for the North American market.

According to the report, both the companies have agreed to run the contract for seven years.

Rheinmetall has also informed that production of the components is slated to begin in Neckarsulm this year, while the installation will take place in facilities in Mexico from 2024 onward.

In line with the “Local for Local” principle, the next development phase will take place in Mexico, where the piston system will be adapted to regional fuel characteristics and undergo final optimization with regard to thermodynamics, it added.

However, Rheinmetall has yet not disclosed the name of the car maker.

source https://www.alcircle.com/news/rheinmetall-ag-expects-to-secure-22-million-euros-worth-aluminium-pistons-order-loi-signed-with-international-carmaker-67770