Dowlais Group

Last updated
Dowlais Group plc
Company type Public
LSE:  DWL
Industry Automotive and powder metallurgy
Founded2023;2 years ago (2023)
Headquarters London, England
Key people
Simon Mackenzie Smith (Chairman)
Liam Butterworth (CEO)
RevenueDecrease2.svg £4,337 million (2024) [1]
Increase2.svg £(106) million (2024) [1]
Increase2.svg £(168) million (2024) [1]
Website www.dowlais.com

Dowlais Group plc is a British company operating in the automotive and powder metallurgy industries. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. [2]

Contents

History

In March 2023, Melrose Industries announced that it would demerge GKN Automotive and GKN Powder Metallurgy from GKN as Dowlais Group. [3] The name selected, "Dowlais Group", was intended to evoke the Dowlais Ironworks where GKN licensed the Bessemer process, using it to produce steel, in 1865. [4]

GKN Automotive has its origins in the company, J. W. Garrington, which specialised in forgings; the forgings produced at the Garrington Darlaston plant, later supplemented by a large plant at Bromsgrove, enabled GKN to become a major supplier of crankshafts, connecting rods, half-shafts and numerous smaller forged components to the UK auto-industry, which had a period of massive expansion during the interwar period and beyond. [5] A new plant was established near Wellington, Shropshire, which was devoted to wheel production, and in the 1960s, the company became a manufacturer of constant-velocity joints, which are used to transfer the engine's power to the wheels. [5]

GKN Powder Metallurgy has its origins in Hoeganaes Corporation (HC) in North America, which GKN acquired in 1998. [6]

The demerger was completed on 20 April 2023. [7]

On 29 January 2025, it was announced that American Axle had made an offer worth US$1.4 billion to acquire the company. [8] [9] [10] The transaction was approved by the shareholders of American Axle on 15 July 2025 and by the shareholders of Dowlais Group on 22 July 2025. It was expected to complete during the fourth quarter of 2025. [11] [12]

References

  1. 1 2 3 "Annual Results 2024" (PDF). Dowlais Group. Retrieved 5 March 2025.
  2. ↑ "Melrose Industries (UK): Demerger of Dowlais Group (UK): Changes in FTSE UK Index Series". FTSE Russell. 20 April 2023. Retrieved 20 April 2023.
  3. ↑ "Melrose sets GKN demerger in motion". Investors' Chronicle. 10 March 2023. Retrieved 15 April 2023.
  4. ↑ Franks, Julian; Mayer, Colin; Rossi, Stefano (1 December 2002). The Origination and Evolution of Ownership and Control (PDF). London Business School. p. 19.
  5. 1 2 Turner, Philip (10 May 1969). "Making the most of it Or – are you driving a GKN?". Motor. pp. 58–60.
  6. ↑ "GKN pays pounds 335m for US metal components firm". The Independent. 8 December 1998. Retrieved 15 April 2023.
  7. ↑ "Melrose set for Dowlais demerger". UK Investor Magazine. 10 April 2023. Retrieved 15 April 2023.
  8. ↑ "UK Car Parts Maker Dowlais Agrees to $1.2 Billion Merger With American Axel". Bloomberg. 29 January 2025. Retrieved 14 February 2025.
  9. ↑ "American Axle to buy GKN automotive owner Dowlais in $1.4 billion deal". Reuters. 30 January 2025. Retrieved 14 February 2025.
  10. ↑ "U.S. Auto-Parts Maker American Axle To Buy Britain's Dowlais For $1.4 Billion". Forbes. 29 January 2025. Retrieved 14 February 2025.
  11. ↑ "Recommended cash and share combination of Dowlais Group plc with American Axel & Manufacturing Holdings Inc". www.aam.com. Retrieved 2025-08-02.
  12. ↑ "Recommended Combination with American Axle & Manufacturing Holdings, Inc". www.dowlais.com. Retrieved 2025-08-02.
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