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Last updated on Tuesday, March 20, 2018
(SALEM) - GKN has confirmed that it will look to divest GKN Powder Metallurgy, comprising GKN Sinter Metals and Hoeganaes, within the next 12-18 months as part of its new business strategy to transform the company, including the sale of non-core segments.
GKN has six divisions and Salem is the smallest one and also the most productive. Salem has 460 full-time and 88 temporary and co-op employees.
Anne Stevens, Chief Executive of GKN, stated, "The new strategy brings clarity, accountability and focus to GKN's world-class businesses and will allow the group to attain world-class financial performance. GKN has great technologies and great people. We have strong market positions and have delivered good growth."
"But too often we pursued growth at the expense of returns," she continued. "This will no longer be the case. The new strategy brings discipline, both financial and operational."
Stevens says there are three components to GKN's new strategy: the company plans to deliver distinct strategies for different product segments through rigorous capital allocation and focused performance targets; establish a delivery culture based on greater accountability, capability and pace, supported by aligned incentives; and separate operationally now and formally when it maximises shareholder value - with the operational separation of GKN Aerospace and Driveline already underway.
As part of a plan to divest non-core segments, GKN group will also look to sell GKN Driveline's Wheels, Cylinder Liners and Off-Highway Powertrain businesses, while identifying plans to grow Driveline China and further develop its eDrive Systems business. GKN Aero Additive Manufacturing was also identified as a product segment positioned for growth.
"GKN Powder Metallurgy is a high performance business that is leading the way in digitalization and innovation," said Paul Cook, VP Program Launch. "GKN has however decided that the future success of the business can be best secured with a new owner. GKN plans to work with any company it is looking to divest with to ensure a smooth transition. GKN has a proven record of finding the right owners so we thrive with fresh investment and focus."
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