As part of the exclusive agreement, the four companies have formed a management company, Synergis China Automotive Die Group, Ltd. (SCDG). SCDG consists of Synergis Technologies Group and China-based First Auto Works, BYD Mould and CITC. Each company owns 25 percent of SCDG.
The new consortium is expected to fundamentally change the way North American tool and die work is done in China by creating a seamless process that lets North American auto companies make design, quality and die adjustments in Michigan while realizing a 10 percent to 30 percent cost savings on tooling.
“SCDG will offer a huge labor force that will expand Synergis’ ability to handle very large tooling programs – programs we previously could not. Ultimately, we expect to serve industries beyond automotive,” said Jay Groendyke, Synergis Technologies Group president/CEO and SCDG partner.
Synergis will serve as the entry/exit point for SCDG’s North American customers – OEMs and Tier One and Tier Two suppliers – as well as the total program manager for the work that will be sent to the three Chinese partners. This process gives customers a local contact and ensures tooling meets quality standards and project timelines.
Die design, engineering changes, quality integration and final die buyoff will occur in the United States. Synergis, under the umbrella of SCDG, will assume the production/product risk and travel requirements that are associated with overseas tooling programs.
The venture will include ramping up some design and engineering capabilities at Synergis in order for additional front-end engineering/design and final review and buyoff to occur in Michigan. Synergis expects to handle most of the work with its current Michigan workforce.
“Our objectives are to reduce costs, maintain quality and keep jobs in Michigan, and this joint venture will help us do that,” Groendyke said.
Synergis is also planning to open a business development office in metro Detroit as well as expand its marketing presence in the southern United States in the coming months.
Synergis employs 250 employees at four locations in West Michigan. Under the SCDG consortium, Synergis’ labor capacity expands to 2,500.
Synergis Technologies Group is headquartered in Grand Rapids, Michigan, USA. The company leads the automotive tooling industry in the processing, engineering and manufacturing of line, transfer and progressive dies. For more information visit www.synergis.us.
