Lucas brakes plant in Wales to be sold
Thursday 06 August 1998
Lucas said it was too early to comment on the future of its staff in Cwmbran, South Wales, where the division's only UK plant is sited.
The Anglo-American group added that it hoped to find a buyer by the end of the year after receiving a number of "strong expressions of interest" for the heavy vehicle brakes division.
Analysts said that the division could attract a price of up to pounds 119m, which amounts to around two-thirds of last year's turnover of pounds 170m.
The unit manufacturers brakes for buses and trucks, and has its headquarters in Ohio in the United States. It has suffered from increased competition and it is seen as peripheral to Lucas's automotive business, which derives a large share of its sales and profits from light vehicle brakes.
Victor Rice, the group chief executive, said: "We have concluded that the division cannot alone sustain a leadership position in a sector that is undergoing rapid consolidation."
The disposal is part of a major restructuring of Lucas's automotive business, which is one of its two core operations alongside its aerospace engineering activities.
The company is to create a single division, LucasVarity Automotive, which will bring together its light vehicle braking, after-market operations, diesel systems and electrical and electronic activities.
The overhaul is aimed at cutting costs and improving efficiency in a business sector which is experiencing greater competition.
The market welcomed the news, and LucasVarity shares rose 4p to 217.5p against the trend of a sharp market fall .
- 1 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 2 Joan Rivers: 'Palestinians deserve to be dead'
- 3 Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
- 4 Botched ice bucket challenge leaves man critically injured after plane drops hundreds of gallons of water
- 5 Friends reunion: Jennifer Aniston, Lisa Kudrow and Courteney Cox perform mini sketch on Jimmy Kimmel Live
Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Joan Rivers: 'Palestinians deserve to be dead'
Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
Botched ice bucket challenge leaves man critically injured after plane drops hundreds of gallons of water
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
- < Previous
- Next >
iJobs Money & Business
£20000 - £30000 per annum + OTE £40 - £50K first year: SThree: SThree Group an...
£400 - £450 per day + competitive: Orgtel: My client, a leading bank, is curre...
£20000 - £30000 per annum + OTE £40-50K first year: SThree: The SThree group i...
£300 - £350 per day + competitive: Orgtel: Cost Reporting Manager - MI Packs -...