Intermet Corp. was a kind of emblem of what a unified metalcasting organization might be, in a more perfect world, and its demise with the financial collapse of 2008-2009 is rather emblematic of all that went wrong for investors that, in the early part of this decade, sought to establish a new operating model for the industry. The news last week that new investors from Cadillac Casting plan to aquire the former Intermet operation at Radford, VA, is welcome because it demonstrates that there are still some optimistic and determined individuals and groups angling to succeed in metalcasting.

To me, the striking detail of this new venture is this figure: $9,100,000.00. Nine million dollars doesn't seem like a lot of money for the world that we live in now. It's roughly the same amount that Big Ten schools received in revenue last year from their contract with ABC/ESPN. And, it's the same amount of money that the Tampa Bay Rays will surrender to a washed-up outfielder they released recently. It's also, reportedly, the amount that former Vice President Al Gore paid for an estate in California. It's more money than I can pay for anything, or am likely ever to pay for anything, but restarting a valuable industrial operations seems like a bargain at that price. Maybe, a steal.

Of course, values are always determined not so much by what you or I might pay for something, but what the world at large determines that thing is worth. Shall we assume that the world at large doesn't value the Radford foundry as well as we think it ought to do? Maybe so, but the new investors obviously aren't concerned with the cost, or the value that the rest of the world sees there.

Their valuation is based on what they think they can gain by the investment — and properly so. Their plan, we must assume, is not based on the low price of the assets, because that would mean their expectations are low, too. Rather, let's be encouraged that their investment is based on their expectation of a significant return, one that will benefit them, their stakeholders, Radford, VA, and the entire industry.