16th Jun 2010 07:00
16 June 2010
GKN plc - Launch of GKN Land Systems Division
Exploiting our capabilities to accelerate growth across markets
GKN plc, the global engineering business that serves the automotive, industrial, off-highway and aerospace markets, today announces the creation of a new division with a strategy for growth and market expansion and the goal of creating a fourth global leader.
The new division, GKN Land Systems, has current annualised sales of approximately £700 million. GKN aims to increase the size of this business over the next five years to sales of about £1.5 billion.
Land Systems division brings together the existing operations of GKN OffHighway, GKN AutoStructures and GKN Industrial and Distribution Services.
Sir Kevin Smith, GKN's Chief Executive, said: "This is a milestone in the growth of GKN. We have a proven track record in developing market leading businesses. We aim to do this again with GKN Land Systems and develop it into another global leader alongside Driveline, Powder Metallurgy and Aerospace, operating at the forefront of their industries".
Andy Reynolds Smith, Chief Executive, GKN Land Systems, said: "By building on GKN Land Systems' existing strengths in the off-highway market and by applying the leading-edge technologies we have developed across the Group, we intend to capitalise on the opportunities being presented in both our existing markets and new, high growth sectors".
GKN Land Systems will focus on two key technology areas: Power Management and High Performance Structures, supported by an expanded Aftermarket and Service arm. GKN already has a number of leadership positions based on these capabilities, notably in components and systems for agricultural, construction and mining vehicles.
Next generation technology developed by GKN is also opening up growth opportunities in defence, high speed rail and potentially in wind power. Andy Reynolds Smith said: "Customers in all these industries are increasingly demanding more sophisticated solutions from global suppliers. GKN has the technological capability and the worldwide network to meet those requirements.
The businesses that form Land Systems will provide a powerful platform for growth and value creation across markets."
Cautionary Statement
This announcement contains forward looking statements which are made in good faith based on the information available to the time of its approval. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a number of risks and uncertainties that are inherent in any forward looking statement which could cause actual results to differ materially from those currently anticipated.
Notes to Editors
GKN plc is a global engineering business serving mainly the automotive, aerospace, industrial and off-highway markets. It has operations in more than 30 countries, around 38,500 employees in subsidiaries and joint ventures and had sales of £4.5 billion and trading profit of £156 million in the year ended 31 December 2009. GKN plc is listed on the London Stock Exchange .
Further Enquiries
Guy StainerDirector, Investor Relations and External CommunicationsGKN plcT: +44 (0)207 463 2382M: +44 (0)7739 778 187E: [email protected] LorenzFinancial DynamicsT: +44 (0)20 7269 7113M: +44 (0)7775 641 807
There will be an analyst and investor meeting today at 0930 at UBS Investment Bank, 1 Finsbury Avenue, Wilson Street, London EC2M 2PP.
A live audiocast of the presentation will be available at www.gkn.com. Slides will be put onto the GKN website approximately 15 minutes before the presentation is due to begin. Questions will only be taken at the event.
A live dial in facility will be available by telephoning the following number: Standard International Dial In: +44 (0) 1452 555 566 Conf ID: 82075967
A replay of the conference call will be available for 14 days at the following number: Standard International Number: +44 (0) 1452 55 00 00 Replay Access Number: 82075967#
The full text of this and other GKN announcements may be downloaded from www.gkn.com.
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