GKN could be split in two as part of move
GKN is looking into splitting its business in two, creating standalone automotive and aerospace companies, according to reports.
The company, which has a major operation in Telford and employs about 340 people at Hadley Park making structural parts including wheels, is in the early stages of considering the plan.
While issues such as GKN’s pension deficit and the business’s huge size could present obstacles to such a deal, it could nonetheless come to pass within months.
Earlier this year it attempted to make inroads into its pension deficit by closing its fund to future accrual and raising £300 million via a bond issue, and a rise in interest rates could also help cut the deficit by improving the performance of bonds in which the fund invests.
The company’s Wheels & Structures operation, which includes the Telford base, recently kicked off a multi-million pound investment programme which will cover each of its seven plants worldwide, with the largest part of that going into Telford.
GKN has declined to comment.