Looking beyond the auto industry: GKN Sinter Metals' industrial products group demonstrates role for powder metallurgy in industrial applications - Materials

Diesel Progress North American Edition, June, 2002

For virtually all of its 75-year-plus history, the powder metals (P/M) industry has focused much of its attention on the automotive sector and for good reason. The auto industry accounted for about 75 to 80 percent of all P/M parts sales, according to industry sources. In addition, the high volumes, long lead times (from part design to actual production) and multiyear life cycle of parts so common in the auto business, matched the capabilities of an industry dominated by small, often family-run, single-facility companies. With a few contracts, a P/M plant could operate profitably with a modest budget for equipment maintenance while employing minimal engineering support.

But things have changed. Globalization of the auto industry and the related trend of OEMs to shrink the supply base, push engineering down the supply chain, and focus on those Tier 1 and Tier 2 suppliers with the ability to deliver to world markets, have had a profound impact on the P/M industry. Significant consolidation and attrition have taken place over the past decade.

Specifically, GKN plc, a U.K.-based, global engineering firm focused on aerospace and automotive-related industries, has emerged as an industry leader through its wholly owned subsidiary, GKN Sinter Metals. Since 1997, the Auburn Hills, Mich., powder metal components manufacturer has acquired more than a dozen companies worldwide, amassing significant market share, manufacturing capacity, product capability, and technical knowledge in the process.

With more than 30 production facilities on five continents, GKN Sinter Metals has positioned itself to meet the needs of the global automotive industry. But along with its investments for the automotive sector, GKN saw in its expansion of P/M capabilities an unprecedented opportunity to hunch a concentrated effort at penetrating non-automotive markets in North America.

The company commissioned industry research to identify concerns of industrial users and purchasers of P/M parts. Particular focus was on quality, delivery and other service-related issues. From the non-automotive customer base, one message came through loud and clear: the non-automotive segment wanted to receive the same attention P/M parts manufacturers give to the largest automotive OEMs.

GKN Sinter Metals' response has been the recent formation of a North American Industrial Products Group (IPG). Lance Harris, vice president & general manager of IPG and the person charged with overall responsibility for building and growing this business unit, is quick to point out that the company's efforts are not simply window dressing.

"The organization we're building is not a reshuffling of resources already in place," said Harris. "We've spent months looking at the manufacturing, technology, sales and customer service-related needs of our current and future industrial customers, and have designed an organization to address those needs."

To start, GKN Sinter Metals dedicated five plants to produce P/M products primarily for industrial customers: DuBois, St. Marys and Kersey, Pa.; and Owosso and Zeeland, Mich. In addition, plants in Worcester, Mass.; Conover, N.C.; Emporium, Pa.; and Menomonee Falls, Wis., now also have lines devoted to non-automotive P/M components.

"For the first time," said Harris, "design and project engineers, purchasers and other OEM specifiers of non-automotive companies can go to a powder metal parts manufacturer that has the capability to handle a wide range of (part) complexity; deliver a complete product range; balance capacities across multiple facilities; provide back-up production resources when demand requires it, and offer full-service engineering support."

He notes that while IPG's piece price, in some instances, may be higher, over time the overall cost to users of the company's products will be lower.

With GKN Sinter Metals selling engineered components as opposed to off-the-shelf products, technology work is ongoing and critical. Terming IPG's approach as "forward engineering," Harris explained that his technologists won't be found in research laboratories, but rather work at the plants, in concert with GKN sales engineers and customer design teams. There is a dual focus, on applied technology to improve product performance, and on process technology to take costs out of actual production.

The company placed one of its key operations managers, Dr. Utpaul Gangopadhyay, in charge of IPG's technology function. "With his extensive background in metallurgical science, and his working knowledge of the P/M manufacturing process as applied to industrial customers, 'Dr. Paul' is uniquely qualified to build the kind of technology function required by our customer base," Harris said.

Technology in GKN Sinter Metals' North American Industrial Products Group entails a front end, covering product applications engineering and costing, and a back end, dealing with program management of new launches as well as transfers.

According to Gangopadhyay, "The quality of customer interface at the front end is critical to effective and cost efficient new product development. Once production begins, we're into the back end, where our technicians are constantly working at continuous improvement of both the product and the process by which it is manufactured."