Factors
Overall
Teksid Aluminum S.r.l., a company operating in the aluminium business and now wholly owned by the Fiat Group, has been included in the Sector’s representation since September 2007.
Excluding the impact of these operations, the Company reported a modest drop in revenues (-3.4%) from 2006.

Cast Iron Business unit
-In 2007 revenues of the Cast Iron Business Unit decreased by 3.1% and volumes by 3.8% over 2006. The negative change is due to lower sales on the North American market (-34.3%) in part offset by higher sales in Brazil (+8.3%) and in Europe (+7.6%). The exchange rate impact was also unfavorable,
especially due to the performance of the US dollar.
It is worth noting that in the Cast Iron business, Teksid is also active in China through Hua Dong Teksid Automotive Foundry Co. Ltd, a jointly controlled company accounted for using the equity method. This company recorded a 25.8% increase in volumes from 2006.

Divesture
In early March 2007, the Company’s interest in Meridian Technologies Inc., through which the Magnesium Business Unit operated, was sold to a consortium of investors headed by the Swiss holding company Estatia AG. These operations were consequently deconsolidated as of the date of disposal.

In June 2007, the Company announced that it sold a plant belonging to TK Aluminum, located in China, to Nemak, which is a subsidiary company of ALFA, S.A.B. de C.V. (ALFA), and produces high-tech aluminum auto parts.

New Product Development
Compacted Graphite Iron (CGI)
Compacted Graphite Iron (CGI) is a material that has been well known for many years. Recently, its importance for the design of components in the automotive field has considerably risen. That material peculiarity has to be seen in the shape of graphite which is spread out within the metallic matrix. If observed through optical microscope, graphite particles appear as randomly oriented. They are oblong shaped ,with round edges. The whole particles constitute a true three dimensional, homogeneous and interconnected graphitic net. That particular structure is responsible for CGI specific properties. The absence of spiky edges along the borders between graphite and matrix let down, if compared to conventional gray iron, the tendency to crack formation within the material. For this reason, the goal of a considerable increasing of static and dynamic mechanical properties is reached. Furthermore, unlike what happens with ductile iron, the presence of such a net maintain at a considerable level the thermal conductivity and the dumping index. Those characteristics bring out CGI as a material particularly adapt for the production of cylinder blocks and heads for internal combustion engines.

Medium-term R&D projects
-NDC systems integration in production cycle
-Material data base for Low Cycle Fatigue engine component design
-New concept for engine components
-Compacted Graphite Iron process/product development
-Rapid Prototyping

History of Investment activities since 2000