GKN Land Systems, part of global engineering group GKN plc, has expanded its footprint in China with the signing of a new joint venture.
GKN Wheels, an international leader in the design, manufacture and testing of large off-highway wheels and part of GKN Land Systems, signed an agreement with Chinese partner Lianyungang Huading Wheel Co., Ltd to form a joint venture in Donghai, near the city of Lianyungang, Jiangsu Province. GKN will hold a 65% majority share. Production will commence in May 2013, pending local regulatory approval, with expected sales of £14 million in 2014.
The joint venture, ‘Lianyungang GKN Hua Ding Wheels Co., Ltd’, will employ around 150 people with an annual capacity of around 650,000 wheels, primarily for the tractor and combine harvester markets in Asia. It complements GKN Land Systems’ existing plant in Liuzhou, which focuses on the construction and mining markets, positioning GKN to better serve its Chinese customer base.
An agreement signing ceremony held last week was led by Zhu Guobing, the Magistrate of Donghai County, with speeches from Xu JiaBao, Secretary of Donghai County Party Committee, Steven Norgrove, Managing Director of GKN Wheels & Structures, and Ma Guangqun, President of Lianyungang Huading Wheels Co., Ltd. Senior GKN management, officials from the Donghai governments and customer representatives also attended.
Steven Norgrove, Managing Director of GKN Wheels & Structures, said: “China is a key growth market for GKN and the agricultural industry in Asia is growing rapidly so we are delighted to be expanding our footprint in the country.
‘Lianyungang GKN Hua Ding Wheels will allow us to act as a local provider with a global support system, and represents an important expansion of GKN’s long established working relationship with China.”
For further information, please contact:
Chris Fox, Director of Communications
Tel: 07920 540 051
Nicola Durman, Head of Corporate PR and Financial Communications
Tel: 07795 618 320
NOTES TO EDITORS:
ABOUT GKN
GKN Land Systems is a leading supplier of technology differentiated power management solutions and services. It designs, manufactures and supplies products and services for the agricultural, construction, mining and industrial machinery markets. In addition, it provides global aftermarket distribution and through-life support.
GKN in China - In 1988, GKN was the first western company to invest in the automotive component industry in China. Through more than 20 years investment and development of our capabilities, GKN now operates from 12 locations in China, employing more than 5,000 people. GKN Land Systems currently operates a Wheels plant in Liuzhou, Guangxi province, which manufactures wheels primarily for construction and mining equipment.
GKN plc is a global engineering group – our technologies and products are at the heart of vehicles and aircraft produced by the world’s leading manufacturers.
GKN operates four divisions: GKN Driveline, GKN Powder Metallurgy, GKN Aerospace and GKN Land Systems. Approximately 48,000 people work in GKN companies and joint ventures in more than 30 countries. We harness our considerable technology and manufacturing resources to supply the highest quality systems, structures, components and services. GKN is listed on the London Stock Exchange (LSE: GKN) and recorded sales of £6.9 billion in the year to 31 December 2012.