Concentric announces restructuring plan in Argentina

News
July 22, 2015

July 22, 2015

Concentric AB, which acquired GKN Sinter Metals de Argentina SA (GKN Pumps) earlier this year, has announced plans for the restructuring of the facility in Chivilcoy, Argentina, due to the weak demand in the South American commercial vehicle market.

The company has stated that it anticipates a headcount reduction of 34 employees that were engaged at the date of acquisition. Part of the headcount reduction has already been delivered and the remaining will be delivered through a mix of voluntary and compulsory redundancies. It was stated that the move will help bring Concentric Chivilcoy’s margins in line with the rest of the group.

The redundancy programme will result in annual savings estimated at MSEK 9. Concentric stated that the total one-off expenses recognised for the restructuring plan at the renamed Concentric Chivilcoy plant amount to MSEK 14.

“As noted in our Q1 2015 interim report, Concentric has recognised MSEK 15 of income arising from negative goodwill as the fair value of the net assets acquired with GKN Pumps exceeded the purchase price. Historically, GKN Pumps has been an unprofitable venture and, as a result, the seller approached Concentric intent upon a strategic exit from the pump manufacturing business. This, together with the apparent over manning in the Chivilcoy facility at the date of acquisition, enabled Concentric to agree a favourable purchase price.”

With the acquisition of GKN Sinter Metals de Argentina SA, Concentric gained an important foothold in the Mercosur trade union, thereby enabling further penetration of the South American commercial vehicle market.

www.concentricab.com 

News
July 22, 2015

In the latest issue of PM Review…

Download PDF

Extensive Powder Metallurgy industry news coverage, and the following exclusive deep-dive articles and reports:

  • From powder modification to rejuvenation: Fluidised Bed Reactors in metal powder production and Additive Manufacturing
  • Retech: Enabling the atomisation of reactive and refractory alloys at substantially higher levels of productivity and lower cost
  • Sustainability in Powder Metallurgy: Highlights from the 41st Hagen Symposium
  • Innovations from Japan’s Powder Metallurgy industry: award winners highlight novel automotive and healthcare applications

The latest news from the world of metal powders, delivered to your inbox

Don't miss any new issue of PM Review, and get the latest industry news. Sign up to our weekly newsletter.

Sign up

Join our community

Discover our magazine archive…

The free-to-access PM Review magazine archive offers unparalleled insight into the world of Powder Metallurgy from a commercial and technological perspective through:

  • Reports on visits to leading PM part manufacturers, metal powder manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.

 

Browse the archive

 

Looking for PM production equipment, metal powders, R&D support and more?

Discover suppliers of these and more in our
advertisers’ index and buyer’s guide, available in the back of PM Review magazine.

  • Powders & materials
  • Powder process, classification & analysis
  • PM products
  • Atomisers & powder production technology
  • Compaction presses, tooling & ancillaries
  • Sintering equipment & ancillaries
  • Post-processing
  • Consulting & toll sintering
View online
Share via
Copy link