Engineering giant GKN has completed a £630 million acquisition of the aero engine division of AB Volvo.
The Redditch-based firm has taken over Volvo Aero which designs, engineers and manufactures components and sub-assemblies for aircraft engine turbines.
It supplies all the major aero engine manufacturers and has positions on most major civil aerospace platforms which are set to increase as aircraft build rates ramp up abd employs around 3,000 people based in Sweden, Norway and the US.
GKN said the operation had strong positions on existing platforms and a pipeline of new technology. It also offered a long-term revenue stream and opportunities for growth.
It said: “The combination of GKN Aerospace and Volvo Aero creates a world leader in both aero structures and aero engine components.
“Within aero engines, GKN’s composite leadership and Volvo Aero’s strong metallic technology together provide a unique offering to customers who are focused on lightweight, high performance engine solutions.”
The group said it now looked forward to “an exciting future combining our world class capabilities”.
For the year ended December 31, 2011, AB Volvo reported audited results attributable to Volvo Aero of sales of £600 million.