GKN agrees with Italians
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GKN HAS REACHED an agreement in principle with an Italian manufacturer of four-wheeldrive axles to form a Joint venture company to manufacture and market axles and associated components.
Carraro of Padova will hold a two-thirds interest in the company, while GKN will hold onethird.
The deal is expected to be ratified by the GKN and Carraro boards in the next few weeks and the new company will then be formed by mid-1984, subject to any EEC approval which may be necessary.
Carraro's range of four-wheeldrive steer axles will complement GKN Axles' existing range of light and heavy on-road axles made at Leeds and Birmingham. The present tractor manufacturing business of Carraro will not form part of the joint venture.
GKN Axles' annual turnover is around £50m, while sales of axles and components by Carraro currently amount to some £25m a year.
Both companies have for sometime been seeking partners for their axle interests. GKN is confident that the deal will help to increase significantly its exports.