flassey Ferguson's 'historic' deal
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Perkins
pines
'ROPOSED takeover of :oyce Diesels by Perkins es' Massey Ferguson company (CM. December le "most important event' recent history of the diesel engine industry," ing to Perkins.
d this when MF chairman Rice announced that, to final agreements benhed, MF would pay £20m ext year for the £31.7m ets of Rolls, which at prea Vickers subsidiary.
ice said: "The move refVlassey Ferguson's straecision to concentrate its :es in its core businesses ing agricultural equipndustrial machinery, dieines and components." Perkins managing direcin Devaney, underlining npany's belief in the hisAure of the move, said: ; not only great news for ish diesel industry, which 1.main competitive by ing efficiency, but is also a which will be welcomed lufacturers and users of pes of equipment lout the world.
ently around 80 per cent s-Royce diesel engines d to UK manufacturers, many of whom export their products. In future these engines will be available on a wider basis to all overseas customers."
Federal versions of the RollsRoyce Eagle engines will be available soon to meet North American demand for 200 to 350bhp diesels.
A new company, Perkins Engines (Shrewsbury) Ltd, will run the Rolls-Royce business from • the former Sentinel works. Rolls managing director Peter Vinson, who plans to remain with the company, said last week: "This move will enable the Shrewsbury plant to develop its full potential as a major exporter, thereby leading to increased business opportunities throughout the world."
The two model ranges dovetail far more than they could be seen to compete, with Perkins manufacturing £294m a year worth of four, six and eight-cylinder engines in the 41 to 194kW (55 to 260bhp) range, and with plans well in hand for a two-litre diesel to be built with Austin Rover for light vans and cars.
Rolls-Royce sold £60.9m worth of engines last year, 80 per cent of them to UK manufacturers. About half were for civilian and military vehicles, and 35 per cent were for the growing generator market.
• More than 1,600 workers at the Rolls-Royce factory at Shrewsbury have voted to accept the management's four per cent pay offer.
The decision at a mass meeting was taken against a background of uncertainty about the future ownership of the factory where the work force has been virtually halved by successive redundancies over the past three years, owing to falling orders worldwide.
A management spokesman at the Shrewsbury factory said: "The management appreciates the responsible action of the work force in accepting the company's wage review offer, particularly in present circumstances."