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Albion gets E9million
Page 6
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LEYLANI) TRUCKS is investing 1:9 million in a 17 per cent increase in its axle manufacturing capacity, and is prepared to commit more funds to further expansion.
Contrary to a trend in the truck industry. Leyland is retaining its in-house axle manufacturing activity and has embarked on a plan to modernise its Albion axle plant in Glasgow.
A former GKN works, adjacent to the Albion South Works, has already been acquired and all axle manufacturing will be concentrated under one roof front the beginning of next year.
The greater part of the investment — 1:7 million — is being devoted to new machine tooling, most of it computer numerically
controlled and including a robotic welder and flexible machining system.
That will increase Albion's production capacity from 30,000 to 35,000 axles and guarantee the preservation of the 1,100 jobs there. There will be scope to expand production to 50,000 axles a year later if demand builds up.
Leyland Trucks' finance director, Howard Kirkhant, said here today that the company sees scope for increased axle sales as the British commercial vehicle market grows, as Leyland increases its share of the market, and as more export orders are won.
Any deal struck with Bedford — current industry gossip suggests Leyland selling cabs and other components to Bedford — would be a separate matter, but the Al
bion investment is linked with renewed attempts to sell axles to specialist builders like 1)ennis and Shelvoke kill Oster.
Ironically, Leyland has just launched a municipal Freighter in competition with Dennis and Shelvoke.
Leyland's commitment to axle manufacturing comes as Ford is preparing to cease inhouse axle building and switch to importing Rockwell axles from the Rockwell/ Iveco plant in Italy.
Leyland Trucks managing director Les Wharton explained this week: —The benchmark for Albion's survival has, and must continue to be, its capability to produce axles competitive in every aspect with those which can be bought front alternative suppliers.''