GKN OffHighway expands in China
1 December 2006One of the world’s largest suppliers of wheels, axles and driveline and attachment systems to the construction and agricultural sectors has announced a further step in its expansion in China with the £9 million ($18m) acquisition of one of the leading manufacturers of wheels for the off highway industry.
With many of its customers already operating in the Far East, the acquisition of the Liuzhou Steel Rim Factory in Liuzhou City in Southern China will create a strong presence for GKN’s OffHighway Division, and subsidiary, GKN Wheels, in a rapidly expanding market.
The operation in Liuzhou employs 550 people, and produces wheels for agricultural and construction equipment, forklift trucks, harbour cranes and light vehicles and had sales revenues of £9million in 2005. It is being acquired for a total consideration of £4 million which will be satisfied from existing resources. GKN OffHighway will retain the existing workforce when the factory is integrated into its global operations.
Martyn Vaughan, Chief Executive of GKN OffHighway, said: “We intend to expand within this growing domestic market and also develop Liuzhou as a low cost manufacturing centre to support our customers throughout Asia and beyond.”
GKN OffHighway, part of GKN Plc, has operated in China for 18 years and currently employs 2,800 people across its Driveline, Sinter metals and OffHighway operations. Current plans envisage the Group’s China workforce increasing to 6,000 within four years. This would make China the third largest concentration of employment within the global GKN Group.
GKN Wheels, part of GKN OffHighway, currently has plants in the UK, Denmark, Italy and the US.
OffHighway has strong market position in all of its product sectors and is a world leader in the supply of power take-off shafts and wheels designed specifically for off-highway applications.
The Group's OffHighway division offers its customers a portfolio of products from wheels to continuously variable transmissions.
GKN OffHighway has a long-established engineering and manufacturing presence in Europe and North America and has approximately 2,600 employees with manufacturing facilities located in the UK, Germany, Denmark, Italy, the US, Canada and licensees or joint ventures in Australia, Brazil, Iran, Spain, Turkey and Japan. It is currently investing in new production facilities in Brazil and China to expand its global presence.
