Engineering group GKN, which has two major aero-structure plants in Bristol, has strengthened its aerospace division by snapping up the engine component business of truck maker Volvo.
GKN, whose core business is manufacturing automotive components, is paying £633m for the division. GKN chief executive Nigel Stein said: “This is a highly attractive acquisition for GKN creating a market leader in aero engine components.
“With excellent technology and strong life-of-programme positions on most civil aero engines, Volvo Aero will significantly enhance GKN Aerospace's engine components business.”
GKN plans to raise £140m in a share sale to help pay for the purchase, it said in a statement today.
GKN bought Airbus’s wing manufacturing activities at Filton in 2007. Since then it has invested £17m in the plant, which employs 1,500 people and makes mainly traditional metallic wing parts for Airbus and seven other planemakers including BAE Systems and Dassault of France.
It has also opened a plant at Severnside makes pioneering composite wing parts for Airbus aircraft, including the yet-to-fly mid-range A350 XWB (extra-wide body) airliner and the A400M military transporter. It has invested £107m in the two buildings on the site – both of which contain world-beating composite wing part manufacturing and handling equipment.
The plant will employ around 450 people when fully operational in 2015.
