Birmingham-based pump manufacturer Concentric, recently acquired by Swedish-based automotive technology group Haldex, is to press ahead with major expansion plans.
Concentric, which manufactures oil, fuel and water pumps for medium and heavy diesel engines, is planning to tap into the growth potential of the emerging markets of Asia and Latin America.
The company, which employs 300 people at its UK base in Gravelly Hill together with a further 350 at plants in the United States, India and China, is the global leader in the oil and water pump markets supplying some of the world’s major heavy plant and truck manufacturers.
The United States remains its largest market, accounting for 47 per cent of sales last year. By comparison, the UK market, where it supplies the likes of JCB and Perkins, totals 18 per cent.
The acquisition by Haldex, which should be complete by the end of the month, will see Concentric join Haldex’s Hydraulic Systems division and its chief executive Ian Dugan will take over as head of the enlarged division.
Despite the move, Birmingham will remain the base for the core operation, guaranteeing the jobs of the hundreds of people who work there.
Mr Dugan said: "We are very excited about the opportunities the merger will provide.
"We are targeting sales growth of $475 million (£237.5 million) over the next few years, primarily by tapping into the huge growth in emerging markets."
"The United States is our largest market and despite the current situation, we have a stable position there. What we are really targeting is the enormous potential offered by the emerging markets of Asia and Latin America," he added.
The company established a factory in India four years ago and opened its China facility in 2006 but the sales contribution from the plants has been considered minimal so far.
China accounted for just one per cent of total sales in 2007 and India two per cent. Latin America was stronger with Mexico generating five per cent and Brazil four per cent.
"Now that the acquisition has been completed we can begin to plan for the future with confidence," said Mr Dugan.
"We intend to retain the Concentric name because it is a strong brand but the combined division represents a business with sales of $400 million (£200 million) and more than 2,000 employees around the world."
The strategy will be to focus on new green products such as hybrid diesels which cut CO2 emissions, oil leakage and reduce fuel consumption.
Its latest variable flow oil pump saves around four per cent on fuel consumption, while its new generation water pumps are two per cent more efficient.
One of its major customers in India is Tata Motors, the company which is shortly expected to purchase Jaguar Land Rover from Ford.
Ian Dugan said: "We are monitoring that situation closely as we think it may offer new opportunities."
The wider Haldex group already operates in specialist sectors including braking systems for commercial vehicle systems, advanced spring wire for combustion engines and transmissions, and traction systems supplying electronically controllable or AWD systems for four-wheel drives.